innovation for excellence · 2021. 4. 15. · 84 fosun international limited annual report 2018...

(Incorporated in Hong Kong with limited liability)(Stock Code : 00656)

极智innovation for excellence

ANNUAL REPORT

2018

Environmental, Social and Governance Report

FOSUN INTERNATIONAL LIMITED ANNuAL REPORT 2018 81

ABOut this REPORtThis environmental, social and governance report aims to illustrate the Group’s policies, performance and measures during the Reporting

Period on environment, employment, health and safety, development and training, labor standards, supply chain management, product

liability, anti-corruption and community investment in an objective and balanced manner, and covers the main businesses operated by the

Group and its important portfolio companies, so as to comply with Environmental, Social and Governance Reporting Guide, Appendix 27 of

the Listing Rules.

This report shall be read in conjunction with the section “Corporate Governance Report” of this annual report.

ROlE OF thE BOARDThe Board is committed to promoting the long-term and sustainable development of the Group’s operations and delivering the value of

sustainable development for all stakeholders. The Board undertakes responsibility for the strategies and reporting on the environment,

society and governance, and is liable for evaluating and determining the Company’s risks in relation to the environment, society and

governance as well as formulating strategies and bearable risk levels for the Company.

stRuCtuRE OF EnviROnmEnt, sOCiEty AnD GOvERnAnCEThe Company set up the ESG Committee in March 2019. The committee is responsible for assisting the Board in directing and supervising

the Group’s development and implementation of its work on environment, society and governance, which includes corporate social

responsibility, environmental protection, philanthropic and community investment.

During the Reporting Period, each of the Office of Board Secretary, Public Affairs and Corporate Communications Centre, Cost and

Procurement Management Department, Anti-Corruption and Supervision Department, EHSQ & Supply Chain & Project Operation

Department (formerly known as Environment, Health, Safety & Quality Supervision Department), Legal Department, and Human Resources

Management Centre and other relevant departments performed its function, communicated with each other on matters in connection with

environment, society and governance, collected data and prepared reports, in order to better implement and refine the Group’s strategies

and actions on environment, society and governance.

Board of Directors

ESG Committee

Office ofBoard Secretary

Public Affairs andCorporate

CommunicationsCentre

Cost and Procurement Management Department

EHSQ & Supply Chain & Project

Operation Department

LegalDepartment

Human Resources

Management Centre

Anti-Corruption and Supervision

Department

EnviROnmEntAl, sOCiAl AnD GOvERnAnCE stRAtEGyThe Group, deeply rooted in China, builds a happiness ecosystem to bring health, happiness and wealth to the world’s one billion families.

“Creating happier lives for families worldwide” is the mission of Fosun. The Group upholds the environmental, social and governance

spirit in its business rules and business operations. In making business decisions, investment decisions in particular, the Group remains its

commitment to environment, society and governance and dedicates to promoting environmental, social and governance practices being in

line with the interests of all stakeholders, with a view to creating value for all stakeholders and the society.

FOSUN INTERNATIONAL LIMITED ANNuAL REPORT 201882


stAkEhOlDER COmmuniCAtiOn AnD mAtERiAlity AssEssmEntStakeholders play a very important role in the Group’s decision-making process. Through various channels such as forums, charitable

activities, complaints, performance evaluation, internal notifications, interviews, reporting emails, meetings, feedback, contact groups, etc.,

the Group maintains an ongoing communication with its stakeholders, including communities, suppliers, employees, shareholders, potential

investors, clients and the media, to identify concerns and interest demand of stakeholders.

In view of the extensive business coverage of the Group, the environmental, social and governance aspects that stakeholders believe

material and relevant are different. This report will elaborate the Group’s policies and actions at the environmental and social levels in

terms of social responsibility, supply chain management, anti-corruption and supervision, environment, health, safety and quality, privacy

protection and human resources, to demonstrate how the Group benefits all stakeholders through its operations.

sOCiAl REsPOnsiBility OF FOsunSince its incorporation, the Group has been fulfilling deep-down its corporate social responsibilities by upholding the values of “Self-improvement,

Teamwork, Performance and Contribution to Society” and working tirelessly to serve the society, the people and the nation.

Founded in November 2012, Fosun Foundation is a corporate foundation and receives the majority of its donation from the Group and its

portfolio companies. Fosun Foundation’s projects include: disaster relief; poverty alleviation; culture, education and young entrepreneurs

and youth employment; and other corporate social responsibility (“CsR“) causes. In recent years, Fosun Foundation mainly focuses on areas

such as culture, education and healthcare. In 2018, Fosun Foundation made donations to more than 40 CSR projects, with the amount of

donation totalling at over RMB135 million.

Since 2015, Fosun Foundation has been expanding its CSR projects overseas. CSR projects were carried out successively in New York,

Lisbon, and Berlin, etc. Fosun Foundation has also established relevant organizations in Hong Kong and united States. Fosun Foundation

consolidated public recognition of Fosun as a leading global citizen with the interest of the community at heart.

Fosun Foundation’s 6th anniversary was celebrated in the week of 26 November to 7 December 2018. Fosun Foundation, together with ONE

Fosun, initiated the community service week named “FOSuN FOR LOVE” and called for participation within its global network. The week was

centred around four themes: be grateful, stay disciplined, humble and cherish every day. Over 40 Fosun’s portfolio companies across 50 cities in

8 countries held in total more than 60 events in which more than 30,000 Fosun employees were involved. Over the past six years, Fosun CSR’s

saplings have been growing steadily and contributing their own strength. up to now, the accumulative donation has exceeded RMB339 million,

contributing more than 40 CSR projects every year, covering 50 countries around the world and benefiting more than 50 million people.

Major CSR projects:

Rural Doctors Poverty Alleviation ProgramThe Rural Doctors poverty alleviation program set off ceremony took place on 4 April 2018. 18 full-time program staffs, under the guidance of Fosun global partners, were assigned to 24 poverty-stricken counties in 12 different provinces, cities and autonomous areas in mid-western China. They will be serving on the site for the poverty alleviation project. On 1 August 2018, the “Health by Heart—Rural Doctors Poverty Alleviation” conference was held at Shanghai Bund Finance Center, aiming at discussing critical matters and exchanging ideas on the project, and confirmed the “Five One Plan”. As at the end of the Reporting Period, number of poverty-stricken counties involved increased from 24 to 37. The project basically operates as assigning staff to support on-site poverty alleviation. Fosun Foundation selected 38 on-site members from 21 companies and assigned them to the 37 counties. With the support of the local governments, the project is implemented properly with quality.



In 2018, remarkable progress has been made in promoting public awareness, and advocating the society when implementing the “Five One Plan”. The program provided assistance to 4,083 village clinics in the 37 counties. It also offered help to 10,659 rural doctors and approximately 2 million households in need. The total donation provided was worth nearly RMB30 million. So far, nearly 100 medias have featured the Rural Doctors poverty alleviation program. The program has obtained a great level of public exposure, the articles were viewed more than 50 million times and the videos achieved more than one million views. In addition, the on-site members live in the local community, assist in the daily work of rural doctors and deploy resources with Fosun that help connect with the local communities and the rural doctors and maintain the team of rural doctors.

Fosun Foundation Art CenterIn 2018, Fosun Foundation Art Center completed its second year of operation since its commencement. This shiny pearl on the bund of Huangpu River had brought forth an unique cultural and arts experience to Shanghai.

From 25 March to 3 June 2018, Fosun Foundation Art Center presented Tomás Saraceno’s Aerographics. It was the first exhibit of Tomás Saraceno, who masters science, architecture, and art. Fosun Foundation Art Center collected the most remarkable work from artists who have utopian envisions of the world in the future. From 28 April to 12 May 2018, the Center invited Robin Peckham, editor of LEAP and curator, and held A World in a Grain of Sand: Mapping Shapes and Sites for Social Geometries, featuring 40 middle-aged and young artists from all over the world. From 3 July to 26 August 2018, the Center held China-Portugal Contemporary art exhibition-saudade: Unmemorable Place in Time, it’s the first exhibit using the concept of “One Belt One Road” since the opening of the Center. The exhibit featured about 100 art works from 12 Chinese and Portuguese artists, covering a wide variety of elements that include paintings, handicrafts, videos, and photography. It was the first in kind in China that presented a systemic comparison and academic categorization of Chinese and Portuguese contemporary art. From 8 September to 18 October 2018, Fosun Foundation Art Center used advanced photography works to present the development of photography equipment and techniques from several perspectives, interpreting the unique culture and historic significance that photography art holds. The exhibit consisted of three units: Collecting the Contemporary: Video and Photography from the Fosun Foundation (2010-2018), Photography works by Annette Kelm, and Fifty, Fifty shown in the ANNEX Space. From 7 November 2018 to 13 Janurary 2019, Fosun Foundation Art Center held Cindy Sherman’s first exhibit in China. Cindy Sherman is known for the style called “make-up selfie”, the style is mostly applied to shoot performative selfie portraits, that revolved conventional photography which empharised on documentation, which creates more possibilities for photography art.

Besides the five major exhibits, the Fosun Foundation Art Center insisted on fulfilling its educational obligations. It has been promoting public education by carrying out educational sessions to satisfy a wide range of needs of the public. During the period of time, Fosun Foundation Art Center held 54 public education events, including public art education weekend activities, 12 creative art class sessions for parents and children, 2 special events, and 1 career boot camp and children’s game manuals. In addition, Fosun Foundation Art Center provided guide services free of charge 61 times at weekend.

Artesunate helps Malaria Treatment in AfricaOn 5 October 2015, the Karolinska Institute in Sweden announced that the 2015 Nobel Prize in Physiology or Medicine was awarded to Chinese pharmacologist Tu Youyou and others for their achievements in the treatment of parasite diseases. Tu Youyou was honored for the pioneered discovery of artemisinin by a team of Chinese scientists under her lead, which created a new method for malaria treatment.

In malaria treatment, Fosun Pharma has injectable artesunate Artesun®, a proprietary innovative drug with full intellectual property rights. According to incomplete statistics, by the end of 2018 over 20 million patients around the world with severe malaria



were benefited from treatment by injectable artesunate Artesun® of Fosun Pharma. Malaria morbidity and mortality continue to decline in Africa. Malaria mortality rate has reduced by 29% in all age groups worldwide, while the malaria mortality rate of children under five years old has reduced by 35%. The worldwide use of injectable artesunate Artesun® can save additional approximately 100,000 lives, most of whom are African children each year.

In the past ten years, Fosun Pharma actively participated in the Chinese government’s program in assisting African in fighting against malaria. Fosun Pharma had organized seminar sessions on Malaria Control for Developing Countries for the 10th consecutive time, Pharmaceutical Quality Management for Developing Countries and Minister-level on Pharmaceutical Supervicion and Management for Developing Countries for several consecutive time, covering more than 50 countries. 148 batches of foreign aid projects (antimalarial drugs) initiated by the Ministry of Commerce of the PRC were duly delivered. At the same time, the injectable artesunate as well as artesunate and amodiaquine hydrochloride tablets, etc. have long been the key innovative drugs in the Chinese government’s assistance programmes to Africa. On 18 August 2018, Fosun Pharma through Fosun Foundation held the Anti-malaria Medication Donation Ceremony for the Ministry of Health of Zambia during the High-Level Meeting on China-Africa Health Cooperation Conference, the total value was more than uSD240,000.

As an official member of the Roll Back Malaria initiative advocated by the World Health Organization, Fosun Pharma is committed to raising the awareness of malaria prevention among the local population in Africa, reducing the morbidity of malaria, and ultimately realising the target of a malaria-free world.

Sing for hopeOn 2 October 2018 (New York time), nominated by the well-known New York charity organization“Sing for Hope”, the Company was awarded “2018 Best Businesses Partnering with the Arts” in America by Business Committee for the Arts (BCA), the most influential public art committee of the united States.

Since 2016, about 60 colorful hand-made pianos have appeared in one of the New York classic landmarks owned by Fosun 28 Liberty plaza every summer. A tour of these pianos in five major districts of New York provide chances for tourists and citizens to enjoy music. These second-hand pianos, carefully drawn by artists, will eventually be donated to public schools in New York where public music education is scarce, benefiting more than 15,000 students in New York City.

Tai Chi Adjuvant TherapyFosun Foundation has long been supporting the promotion of the Tai Chi culture through hosting CSR programs like Tai Chi adjuvant therapy program for Parkinson’s disease and sharing with the public the latest progress of Tai Chi adjuvant therapy for Parkinson’s disease. Since 2015, Fosun Foundation has supported the scientific research on “sports therapy for Parkinson’s disease”, and successfully conducted fifteen free Tai Chi classes, more than 300 patients with the Parkinson’s disease (PD)

participate in total.

As at the end of 2018, the Tai Chi adjuvant therapy program for Parkinson’s disease had been expanded to 4 cities (Shanghai, Beijing, Chengdu and Ningbo). On 8 April 2018, Fosun Foundation collaborated with Ningbo No.2 Hospital and organized the “Tai Chi Anti-Parkinson’s Disease” event. More than 70 Parkinson’s Disease

patients signed up for the event. 10 April 2018, one day before the World’s Parkinson’s Day, Fosun Foundation collaborated with Shanghai Ruijin Hospital and distributed the Guidance of Tai Chi as A Complementary Treatment to The Parkinson’s Disease to the patients. Fosun Foundation will further mobilize its resources and promote the Tai Chi activities to more communities in 2019, so as to improve public health across China.



Protechting Start-ups Acceleration ProgramProtechting Start-ups Acceleration Program is jointly initiated and organized by Fosun and One Fosun portfolio companies. At the beginning of 2016, Fosun used Lisbon as the location for its innovative incubator, upholding the principle of “innovation is about people”, and together with Fidelidade, deepened their cooperation with European start-up incubators in fields such as medical healthcare, insurance innovation, and fintech. Fosun utilized its local and overseas resources to organize trainings in marketing, financing, human resources, investment, and big data. Fosun hopes that professional trainings would help their start-ups to grow. Fosun also hopes that global cooperation and partnership would help China achieve its industrial transformation and upgrading.

Building upon the success of the first two Protechting Start-ups Acceleration Programs, Fosun further incubated “Protechting 3.0” in 2018. Working along with all members of the Fosun family, Fosun forged the cradle for cultivating “unicorns”, assisted more youth in various realms of entrepreneurship and innovation. Since the launch off in February 2018 in Lisbon, Protechting 3.0 has launched roadshows in the six most innovative cities in the world: Brussel, Frankfurt, London, Macao, Lisbon, and Shanghai. Protechting 3.0 received applications of 235 youth entrepreneurship teams from 33 countries. 21 teams successfully went through the multiple rounds of screening to qualify for the Bootcamp. On 8 November 2018, the three finalists of the program were announced at the Web Summit. With the generous support of Fosun Foundation, the three finalist teams started their roadshow in China. They presented their business plans in Shanghai, Zhuhai, and Beijing from the 7th to the 13th in December 2018, with the hope to identify potential investors and further opportunities. In the meantime, the three teams had conversations with Mr. Wang Qunbin, CEO of the Company, about youth entrepreneurship and had discussions with eight Fosun investment teams. They were also invited as representatives to be present at the Fosun CSR night on 8 December 2018.

After three years of development since its debut as a Fosun CSR brand, protechting shows Fosun’s and Chinese enterprises’ determination in taking on more global social responsibility. The program supported 487 start-ups from 42 countries near areas covered by the “One Belt One Road” Initiative. Protechting was awarded “The Third ‘Value Co-Creation’ Outstanding Corporate Social Responsibility Practices in China”, “2018 Chinese Corporate Best Practice of Realizing Sustainable Development Goals” by united Nation Global Compact China network, and “2018 Belt and Road CSR Innovation Case”.

For its next step, “Protechting” will be expanded to, among others, Macau, Brazil, uK and the united States, so as aim to become a world-class youth entrepreneurship innovation program.

Pramerica-Fosun Spirit of Community AwardsPramerica-Fosun Spirit of Community Awards originated from Pramerica Spirit of Community Awards. The awards were community services awards entirely based on voluntary community services for the youth in the united States. It aims to identify and recognize outstanding teenage volunteers who made outstanding contribution to communities. By rewarding honors to attract and encourage more young people to devote to the greater public good. Over the past twenty years, Pramerica Community Awards have awarded nearly 120 thousand global excellent young volunteers, from various countries including Japan, South Korea, Ireland, India, and Brazil.



In 2013, Fosun Foundation in joint effort with Prudential Financial, Inc., had launched the “Pramerica-Fosun Spirit of Community Awards” in Chinese mainland. As of today, the “Pramerica-Fosun Spirit of Community Awards” has been successfully held for the fifth consecutive years. The competition had received approximately 2,800 effective applications and granted awards to approximately 225 teenage volunteers for their outstanding contributions to social welfare. The programme managed to significantly advance the development of youth voluntary activities in the PRC and has become one of the most prestigious awards in youth social responsibility.

The 2018 Pramerica-Fosun Spirit of Community Awards Ceremony was held at Fosun Foundation Art Center on 17 March 2018. 15 young volunteers were awarded “Star Volunteer”. Two of them were awarded “Philanthropy Ambassador” and gold medals respectively. They will be invited to attend the Prudent International Ceremony in Washington D.C., the united States, with outstanding volunteers from all over the world.

Supporting and Developing Local Farming: a Unique Partnership with AgrisudFinding that in some cases local supply was inadequate to meet its villagers’ demand for fresh produce, Club Med decided to help local communities to strengthen more sustainable and more environmentally friendly agricultural production network, thereby playing an active role in the local.

Therefore, this decision led to a partnership with the Non-Government Organization Agrisud, signed in late 2008, to enable local producers to supply Club Med villages, and to guide them towards more sustainable land use, based on the principles of agro-ecology.

This program has been launched in Senegal, Brazil, Morroco, and Indonesia. It will be launched in Mauritius and China. Benefitted from the program, over 150 tons of fresh vegetables and fruits have been supplied to Club Med Resorts and have benefited more than 2,500 people.

Fosun and the hong Kong University of Science and Technology Jointly Organized “Fosun young Fellowship Program”Following the success of “Fosun-HKuST MBA Technopreneur Program” co-organized by Fosun and the Hong Kong university of Science and Technology (“hkust”) last year, Fosun this year has further cooperated with HKuST in jointly launching the“Fosun Young Fellowship Program”.

In the “Fosun Young Fellowship Program”, Fosun will provide outstanding HKuST students with full-time, paid internships that last for three to six months, allowing them to gain work experience in the businesses of health, happiness and wealth across different regions. HKuST will assist Fosun in promoting the program, and in recruiting and nominating suitable students. Fosun and its portfolio companies will shortlist students for interview. Selected students will embark on the internship in Fosun or its portfolio companies. Students will then become “Fosun Young Fellow” upon completion of their internships and will be entitled to “Fosun Young Fellowship Scholarship”.

The goal of the program is aligned with Fosun’s mission of “creating C2M ecosystems in health, happiness and wealth through technology and innovation, and providing high-quality products and services for families around the world”. On one hand, the program provides young talents in Hong Kong with internships and career opportunities and makes them a better fit for the workforce. On the other hand, the program can assist in building talents pipeline for Fosun and its portfolio companies.

Fosun Fulfils Corporate Social Responsibility by Participating in Voluntary Work in hong KongAs a renowned non-state-owned Chinese company listed in Hong Kong, the Company has always been focusing on the sustainable deve lopment for the interests of i t s shareholders, investors, media, community and

other stakeholders. This year, Fosun received the “Caring Company” logo from The Hong Kong Council of Social Service in recognition of its long-term commitment to promoting corporate social responsibility and its continued efforts in three aspects, namely “Caring for the Community”, “Caring for the Employees” and “Caring for the Environment”.

2016 - 2019



During 2018, Fosun fulfilled its corporate social responsibility by participating in the charitable work of The Hong Kong Federation of Youth Groups (“hkFyG”). For instance, Fosun participated in the “Heart to Heart Project” organized by The HKFYG and became one of the “Heart to Heart Companies”. Through sponsoring Hong Kong teenagers and schools to take part in voluntary activities in the neighbourhood, Fosun promoted the values that a company should give back to society and serve the community.

In December 2018, the Company and The Hong Kong Federation of Youth Groups – Jockey Club Ping Shek Youth S.P.O.T. jointly conducted a campaign named “Giving Wishes and Gifts to Neighbourhoods”. Employees (and their families) of Fosun’s portfolio companies in Hong Kong, including Peak Reinsurance and Fosun Hani Securities, formed small groups to visit nearly 30 elderly families and home alone elderly in Ping Shek Estate in Choi Hung, a public housing estate with a history of 50 years in Hong Kong. The groups delivered gift packages and expressed their care about vulnerable groups in society, spreading the concept of “FOSuN FOR LOVE” to people from all walks of life.

In addition, Fosun sponsored HKFYG’s community project “Neighbourhood First”, and organized a Lunar New Year reunion dinner for the neighbourhood to let the elderly who lived alone, low-income families, families which were living on Comprehensive Social Security Assistance and physically challenged people feel cared for during the festive season. This is one of Fosun’s ways to express its care for the underprivileged community. Meanwhile, Fosun also gave its support to HKFYG’s Neighbourhood Rice Giving Scheme. It organized some of its staff members into groups of volunteers who assisted in delivering rice as economic aid to the people living in elderly care centres of public housing estates on a number of weekends.

Fosun participated in Standard Chartered hong Kong Marathon 2018On 21 January 2018, employees of the Company and its portfolio companies in Hong Kong, including Peak Reinsurance and Fosun Hani Securities, formed a ONE Fosun team to participate in an annual sports event “Standard Chartered Hong Kong Marathon 2018” as a way to actively support the harmonious development of the local communities.

Fosun also raised funds for the Hong Kong Paralympic Committee & Sports Association for the Physically Disabled and Orbis, which is an international non-profit medical education organization, by participating in the Standard Chartered Marathon. The move was aimed at promoting sports among disabled people in Hong Kong and at arousing public awareness of the plight of the visually impaired.

suPPly ChAin mAnAGEmEntThe overall strategy for procurement management of the Group is: accommodation, evolution, cost reduction, efficiency enhancement. Accommodation and evolution are strategic measures whereas cost reduction and efficiency enhancement are strategic goals. The basic principles of the Group for procurement practices are: openness, fairness and impartiality. The basic principles of the Group for selection of suppliers are: meeting the technical and business requirements and winning the bid at the lowest price.

The “Procurement White Paper” on group procurement management policy and procedure executed by the Group from 2017 to the present includes: “Basic Guidelines for Procurement Management”, “Basic Guidelines for Supplier Management”, “Management Measures for Strategic Procurement”, “Procurement Management Assessment and Red, Yellow and Green Light Management Measures”, “Management Measures For Procurement System” and “Procurement-related Complaints Handling Management Regulations”. In order to achieve the further standardization, systematization, sharing of procurement, transparency and informationization management of the Group, the Group upgraded “Procurement White Paper” by recompiling “Basic Guidelines for Procurement Management”, “Basic Guidelines for Supplier Management” and “Management Measures for Strategic Procurement” in 2018.

Onelinkplus (www.onelinkplus.com) constructed the Risk Alert Management System and Supplier Management System, as well as the Supply-Chain Collaboration System, in addition to the continuous iteration of the procurement bidding platform in 2018, and put them into the actual business scenario, to enable the Group to realize the digital transformation of the extended supply chain, and to help the Group to reduce cost and improve efficiency. up to now, Onelinkplus has covered nearly 300 member companies and formed a large database of over 30,000 suppliers. It targets to achieve a full closed loop of procurement supply chain processes in 2019. That will empower the supply chain management of the Group and its portfolio companies more transparent, smart and prominent. Through solid post-investment management and industry operations, it will serve the overall strategic goals of the Group more efficiently.

Anti-CORRuPtiOn AnD suPERvisiOnIn the year of 2013, the Company formally established the Anti-Corruption and Supervision Department which specializes in investigation,

handling and prevention of cases of malpractices of staff such as corruption, abuse of power or dereliction of duty. The main mission of this

department is to investigate and handle malpractices and control risks in an independent, impartial and keen manner. The Anti-Corruption

and Supervision Department of the Company has established a professional investigation team with extensive work experience in public

security economic investigations and procuratorate anti-corruption investigations which are able to discover, investigate, handle major

corruption cases of the Group and core enterprises and transfer the cases to judicial organs.



The Company adopts a zero tolerance policy for bribery, embezzlement and other corruption acts of all staff. By means of the centralized

purchasing platform, “Fosun Anti-Corruption”, the official Wechat public account and other channels to publicize extensively the way to

report any incident of corruption, the Company supervises the integrity and diligence of its staff. We have various regulations and systems

for staff integrity, the protection and reward procedures of the informants and witness, and internal investigation procedures which include:

“Incorruptible Working Regulations for Employees”, “Management Measures for Cash Gifts and Gifts Received during Business Activities”,

“Regulations regarding Personal Matters Reporting for Key Position Cadres”, “Measures for the Protection and Reward of the Informants

and Witness”, “Several Provisions on Anti-corruption and Supervision Line Case Investigation and Punishment”, “Evaluation Measures

for Anti-corruption and Supervision Line’s Performance”, “Guideline for Tender Activities Regulation and Supervision”, “Regulations for

Anti-corruption Inspection”, “Management Measures for Anti-corruption and Supervision Lines”, “Anti-corruption Assessment and Red,

Yellow and Green Light Management Measures”, etc.

The Company strictly complies with the laws and regulations of the PRC and other countries in which its investment is located, including

laws and regulations such as prevention of bribery, extortion, fraud and money laundering, and has various internal control systems to

ensure such compliance in operations.

Preventive measures: First, publish online the code of conduct on anti-corruption, incorporate it into the Staff Handbook and publicize

extensively the reporting methods and the results of punishing relevant staff through “Fosun Anti-Corruption”, the official Wechat public

account and other channels, expanding the influence of anti-corruption investigation within the Group; second, seriously punish the

fraudulent employees and maintain the high pressure of investigation regarding the fraudulent behavior, promoting the atmosphere of

anti-corruption and creating a culture of anti-corruption in the Group and all core enterprises that all corruption cases will be investigated;

furthermore, actively participate in the activities of China Enterprise Anti-fraud Alliance and bring dishonest staff into the Alliance’s

blacklist, increasing the social costs of acts without good faith.

Reporting procedure: Anti-corruption supervision telephone numbers and mail boxes are published on the centralized purchasing platform,

“Fosun Anti-Corruption”, the official Wechat public account and in the process of each tender and subsidiary inspection to receive internal

and external report information, and designated staff are assigned to collect, assess and investigate each piece of report information.

Implementation and monitoring methods: (1) Anti-corruption institution construction: establish an Anti-Corruption and Supervision

Department, form a professional investigation team, and conduct performance appraisals on departments of subsidiaries exercising

the functions of anti-corruption and supervision and their responsible persons; (2) fraud case investigation and punishment: conduct

professional investigation on key fraud cases or fraud risks of the Group and its other portfolio companies through receiving whistleblowing

reports or handing over, anti-corruption inspection, sampling inspection, etc. and transfer alleged criminal cases to a judicial organ; and (3)

operation risk management and control: identify, rectify and prevent relevant operation risks in the process of investigating and punishing

fraud cases, restore economic losses while punishing the responsible persons and block the relevant anti-corruption and management

loopholes.

EnviROnmEnt, hEAlth, sAFEty AnD QuAlityI. Policies and Guidelines

“Self-improvement, Teamwork, Performance and Contribution to Society” constitutes the cultural values of the Group. We have

always regarded environmental protection, occupational health, production safety and quality management (“Ehs&Q”) as the

important parts of our corporate social responsibility and incorporated them in the Group’s strategy for sustainable development.

The “Fosun Group Environment, Health, Safety & Quality Policy”, which was issued jointly by the Chairman and Executive Directors

of the Company, has been fully implemented in all companies under the Group since 2012 and was renewed in February 2019.



Our commitments reflect the Group’s insistence on the following aspects:

1. To comply with environmental protection laws and regulations and government emission standards, and continuously

improve management and adopt advanced technologies during the life cycle of an enterprise operations to reduce air

emission, wastewater, solid waste, and greenhouse gases, and strive to minimize the impact on the environment;

2. To make good use of and cherish resources, improve production technology to use natural resources efficiently, carry out

energy conservation and emission reduction, and continue to adopt more environmentally friendly raw materials;

3. To reduce the impact of production and operation on natural resources, protect the environment of mining area, and

actively carry out geological disasters and environmental governance in the mines;

4. To provide employees with a safe working place and protect employees and contractors’ employees from occupational injuries;

5. To provide customers with safe products and services and strive for excellence; and

6. To actively adopt international advanced management concepts and methods such as Lean Six Sigma to promote the overall

improvement of operations.

The Group’s environment, health, safety and quality policy is as follows:



To ensure the implementation of the policy, the Group set up the Environment, Health, Safety & Quality Supervision Department in 2012 to supervise the implementation of EHS&Q by each member company to inspect and ensure the legal, compliant, efficient and safe production of all member companies. The member companies responded positively, getting involved and improving the EHS&Q governance structure.

The Group issued the Regulations of Shanghai Fosun High Technology (Group) Co., Ltd. on the Line Management of Environment, Health, Safety & Quality. In 2018, together with the Human Resources Management Centre, the Group clearly stated that the year-end performance appraisal of the heads of the business segments and core member companies would be linked to the environmental performance of the companies, urging the implementation of a regional responsibility system. The Group holds the EHS&Q line annual meeting each year to carry out the summary and planning of EHS&Q management. The picture shows that the Company’s CEO Wang Qunbin was delivering a speech at the line meeting. He stressed that the Group would endeavour to: 1. adopt world-class EHS&Q management standards; 2. implement full coverage of EHS&Q management, including full coverage before and after investment, full coverage of regions and full coverage of industries; 3. accelerate the construction of a professional EHS&Q team in member companies; 4. establish and improve the EHS&Q reward and punishment mechanism for all member companies.

II. Responsible InvestmentThe Group joined the united Nations (“un”) Global Compact in July 2014, which formally established our global commitment to sustainable development. In order to actualize the sustainable development goals, the Group and its member companies have actively focused on and implemented responsible investments. For example:

h&A

Since 1995, Prime Value’s ethical funds issued by H&A have been investing in corporate stocks and bonds that meet H&A’s ethical, social and environmental standards, excluding companies that violate human rights, participate in weapons production or trading, accelerate climate change, use socially controversial technologies, or participate in risky activities. To boost contribution to ethical and responsible investment, the Principles of Responsible Investment (PRI) was signed by H&A.

PEAK REINSURANCE

Peak Reinsurance is a signatory to the Principles for Sustainable Insurance (PSI) of united Nations Environment Programme Finance Initiative (uNEPFI). In the investment process, Peak Reinsurance is committed to promoting the integration of PSI and business decisions and excluding companies that have a negative impact on the climate from the investment portfolio.

The Group and its member companies pay special attention to investment and development opportunities in the areas of clean energy and clean technology. To date, our green investment practices include but not limited to:

BESINO ENVIRONMENT

Besino Environment, which specializes in industrial wastewater and municipal sewage treatment and municipal water supply fields, managed 10 industrial wastewater and sewage treatment plants and 2 waterworks in China by the end of 2018. In 2018, Besino Environment recorded 412,694,500 tons in wastewater treatment volume, 55,764.13 tons in chemical oxygen demand (COD) removal, 6,745.91 tons in ammonia nitrogen treatment volume, and 56,207.17 tons in suspended solids removal. Two subsidiaries in Hefei participated in the Chaohu Lake treatment project and provided excellent water source for Chaohu, with the effluent water quality reaching the standard for Class IV surface water under GB3838-2002 Surface Water Environmental Quality Standard. In 2018, Besino Environment supplied water for 100,000 households. Wangxiaoying Sewage Treatment Plant, a subsidiary of Besino Environment, will complete the installation of a 10.8 MW photovoltaic power generation system in June 2019.

CN-NL WASTE SOLUTION CO., LTD. (“Cn-nl wAstE sOlutiOn”)

CN-NL Waste Solution specializes in providing urban and rural intelligent environmental hygiene solutions, and has been engaged in the investment, construction and operation of waste cleaning, collection and transportation, and disposal projects. CN-NL Waste Solution’s environmental hygiene integration project covers 22 provinces, municipalities and autonomous regions across the country, serving nearly 100 million people. In 2018, the amount of garbage collection and transportation was 31 million tons.



yUNNAN FEIERTED ENVIRONMENTAL PROTECTION TEChNOLOGy CO., LTD. (“FEiERtED”)

Feierted mainly researches and produces carriers for exhaust gas treatment, particle traps and purification devices, and it has met

advanced world standards in this regard. Feierted proactively participates in car renovation projects in various regions. In 2018, it

treated exhaust gas for more than 20,000 cars at home and abroad.

TIANJIN JEVE ENERGIES CO., LTD. (“JEvE”)

JEVE, a national high-tech enterprise, mainly provides ternary power batteries for new energy passenger vehicles. With a leading

R&D capability in China, JEVE has filed 168 patents in China, including 91 invention patents, covering multiple areas such as key

materials, battery design, battery manufacturing processes, and battery equipment.

KOLLER

Koller specializes in the design and production of lightweight end products and molds for automotive sector using carbon fiber and

other composites. It provides the automotive industry with solutions that reduce body weight, thereby reducing energy consumption

and achieving energy saving and greenhouse gas (“GhG”) emission reduction.

In terms of investment decision-making and risk control, the Group adheres to value investment and insists on not investing in companies

that are not committed to good quality and whose related industries are at odds with the green development strategy of the country. In

2013, the Group issued the “Guidelines on EHS&Q Due Diligence of Investment Projects of Shanghai Fosun High Technology (Group) Co.,

Ltd.” (《上海復星高科技（集團）有限公司投資項目環境健康安全質量盡職調查指引》) and the “Manual of Fosun Group EHS Management

System” (《復星集團EHS管理體系手冊). Through the pre-investment due diligence on the EHS&Q of target company and investment

decision-making, the post-investment EHS&Q management and consulting services, exit-phase EHS&Q checks and other measures, the

Group ensures that EHS&Q risk control and management pervades the entire investment and business activities.

III. Selection of Disclosure ScopeIn terms of the disclosure of EHS&Q information, we first calculate the proportion of the net asset value (NAV) of the investee

companies to the net asset value of the Group and controlled companies and joint ventures with a proportion of more than 1%

are selected out. Then we determine the EHS&Q risk values of such controlled companies from four dimensions, i.e. environment,

health, safety and quality. By comprehensively analyzing the proportion of net assets and the EHS&Q risk value, we develop an

EHS&Q risk management matrix map and select high- and medium-risk member companies in the chart to disclose significant

EHS&Q information. The companies being selected include: Fosun Pharma of the Health Ecosystem, FTG and Yuyuan of the

Happiness Ecosystem, and Nanjing Iron & Steel and Hainan Mining of the Wealth Ecosystem.

10%

8%

6%

4%

2%

0%0 4 6 8 102

AmeriTrust

H&A 28 Liberty

Baihe JiayuanPeak Reinsurance

Forte

Fosun Insurance Portugal

Bund Finance Center

FTG

Nanjing Iron & Steel

Hainan Mining

Yuyuan

Fosun Pharma

BCP

The risk of EHS&Q

ROC

NA

V P

rop

ort

ion

EHS&Q Risk Management Matrix

Note: Given that Yuyuan completed its material assets reorganization in 2018, and the management risk of real estate projects under construction is transferred to Yuyuan, the EHS&Q risk value of Yuyuan increases while that of Forte is correspondingly reduced.



IV. Environmental ProtectionSticking to the principle of sustainable development, the Group supervises and guides its member companies to mitigate the

impact of production and business activities on the environment and the human body by reducing the emissions of solid waste,

wastewater and atmospheric pollutants, effectively utilising resources, and at the same time seeking opportunities to recycle wastes.

In 2018, there were no major environmental pollution incidents in the member companies of the Group. In addition, the Group

has established and implemented the management framework system for environmental protection, occupational health and safety

production (“Ehs”) to systematize and standardize the environmental protection of member companies on a regular basis every

year. Companies under the Group are encouraged and promoted to obtain environmental management system certification. As of

the end of 2018, 26 member companies have obtained environmental management system certification.

In terms of environmental protection, we select Fosun Pharma of the Health Ecosystem and Nanjing Iron & Steel and Hainan Mining

of the Wealth Ecosystem, which have higher environmental risks in the EHS&Q risk management matrix, to disclose their summary

of significant information.

1 hEALTh ECOSySTEM – FOSUN PhARMA

Fosun Pharma has always complied with the environmental protection policy of “implementing the strategies for sustainable

developments of both environment and society, by preventing contaminants and pollutions, saving energies, reducing

emission, protecting ecological diversity, and building environment-friendly communities”, and positively responded to the

blue sky protection campaign put forward by the Ministry of Ecology and Environment of the PRC. During the Reporting

Period, it imposed more demanding and stricter requirements and made more detailed efforts to strengthen environmental

protection in the production and operation of member companies, alleviated the negative impact of production and

operation activities on the environment, and sped up the upgrading of existing environmental protection facilities to meet

the increasingly stringent environmental requirements of the country and resolutely put an end to major environmental

incidents in operation.

During the Reporting Period, Fosun Pharma continued to enhance the internal control of wastewater, exhaust gas and

industrial waste (general industrial solid waste & hazardous waste) generated during the production and operation of

member companies to ensure continuous and stable compliance with the relevant national, industry and local standards. In

addition, it strictly implemented the “three-simultaneity” principle, which requires simultaneous construction and operation

of pollution prevention facilities, to ensure that the incremental of pollutant emissions due to new projects is minimized,

thereby fulfilling its commitment for sustainable developments of both environment and enterprise economy.

The environmental pollutants discharged by Fosun Pharma are as follows:

items 2018 2017 2016

Wastewater

Total amount of wastewater (10,000 tons) 756.5 731.6 678.5

COD (ton) 847 841 490

NH3-N (ton) 254 486 60.6

Exhaust gasNOx (ton) 251 239 466

SOx (ton) 279 245 485

Solid waste*

Total amount of solid waste (10,000 tons) 8.6 8.9 8.1

Total amount of hazardous waste (ton) 2,683 2,397 1,627

Total amount of non-hazardous waste (10,000 tons) 8.3 8.7 7.9

* As the solid waste classification in China is different from that of outside China, the table only discloses member companies’ solid wastes in China.

(1) Wastewater management

Compared with 2017, Fosun Pharma’s total discharge of wastewater rose by 249,000 tons or 3.4% in 2018; that

of COD rose by 5.5 tons or 0.7%; and that of NH3-N slumped 232.3 tons or 47.8%. Due to the difference of the

consolidation standards of member companies Gland Pharma and Hengsheng Hospital, their total discharge of

wastewater rose by 387,391 tons in 2018 from the previous year, and that of COD rose by 15.5 tons from the

previous year, both in terms of consolidation.



During the Reporting Period, Fosun Pharma strengthened wastewater management from two aspects: on one

hand, it strictly required member companies to ensure stable operation of wastewater treatment facilities and

maintain continuous up-to-standard discharge; on the other hand, for member companies with insufficient

wastewater treatment capacity, it actively increased hardware input of wastewater treatment facilities by adding

new wastewater treatment facilities or upgrading existing wastewater treatment facilities. Member companies, such

as Wanbang, Chongqing Yao Pharmaceutical Co., Ltd. (“yao Pharma”), Guilin Pharmaceutical Co., Ltd. (“Guilin

Pharma”), Hunan Dongting Pharmaceutical Co., Ltd. (“Dongting Pharma”), and Suqian Zhongwu Hospital Co.,

Ltd., all upgraded the existing wastewater treatment facilities during the Reporting Period. After the above five

enterprises upgraded their wastewater treatment facilities, the total amount of COD decreased by approximately 4.5

tons compared with 2017. Another member company Shine Star (Hubei) Biological Engineering Co., Ltd. (“shine

star”) re-optimised the operation of the internal wastewater treatment facilities of the enterprise after the release

of a higher standard on ammonia nitrogen pipes emission in the wastewater treatment plant of the park, which

improved the NH3-N removal capacity and thereby cutting the NH3-N emission by an estimation of 230 tons.

(2) Air pollutant emissions

Compared with 2017, Fosun Pharma’s total emissions of air pollutant NOx rose by 11.92 tons or 5.0% and that

of SO2 rose by 33.53 tons or 13.7% in 2018. The increment mainly came from the production growth of member

company Shine Star which reported an increase of 22.73 tons and 39.16 tons in the emission of NOx and SO2

respectively. During the Reporting Period, Fosun Pharma’s non-methane hydrocarbon was 18.11 tons and was

emitted in an organized way, which is disclosed for the first time by the Group.

To cooperate with the nation’s three-year action for the blue sky protection campaign, the member companies of the

pharmaceutical sector affiliated to Fosun Pharma have proactively responded to the requirements of environmental

authorities at national and local levels to promote their respective volatile organic compounds (VOCs) treatment

projects and installation of applicable environmental facilities. A number of member companies, such as Xuzhou

Wanbang Jinqiao Pharmaceutical Co., Ltd., Guilin Pharma, Dongting Pharma, Shanghai Zhaohui Pharmaceutical Co.,

Ltd., and Shine Star, accelerated their engagement with mature VOCs treatment facility constructors in the market

and set about starting or building VOCs emission reduction and treatment facilities, investing RMB37 million in the

equipment construction necessary for VOCs emission reduction projects.

(3) Solid waste management

Compared with 2017, the total amount of solid waste in Fosun Pharma’s domestic enterprises dropped 3,171 tons

or 3.6% in 2018. Among the solid waste of 2018, the total amount of hazardous waste was 2,683 tons, of which

2,538.6 tons were incinerated, 28.7 tons were buried, and 115.9 tons were treated in other ways including storage

for disposal. For industrial solid waste, 72,700 tons of wastes were reused as resources, and the proportion of

reusable wastes accounted for 93.6% of the total industrial solid waste. For packaging materials, some member

companies reduced emissions to the environment by negotiating recycling with suppliers.



2 WEALTh ECOSySTEM – NANJING IRON & STEEL

In 2018, Nanjing Iron & Steel upheld the principle of sustainable development and followed out its environment protection

policy that takes stable up-to-standard emission as the bottom line and ultra-low emission as the target and underlines the

implementation of the three-year plan for environmental improvement. It strictly implements the three-level environmental

supervision system, strengthens the daily management of environmental protection facilities, speeds up the pace of

pollution control, and continuously reduces pollutant emissions and improves the environment of the plant, making

unremitting efforts to make itself a ecological urban steel mill. Nanjing Iron & Steel strictly abides by national and local

environmental laws and regulations and fulfills social responsibilities on its own initiative. In 2018, with the joint efforts of

all employees, Nanjing Iron & Steel successfully achieved its annual environmental protection goal: a standard-reaching rate

of 100% in supervisory monitoring.

In 2018, Nanjing Iron & Steel carried out 50 projects on environmental technology upgrading and environmental facility

renovation, with its investment in under-construction environmental protection projects amounting to RMB1.5 billion. To

achieve ultra-low emissions and cooperate with the nation’s blue sky protection campaign, it focused on the promotion of

desulfurization, denitrification, dust control, and raised dust control projects.

Desulfurization and denitrification project:

• Three coke oven gas-based desulfurization and denitration devices were built and put into use, reducing SO2

emissions by 500 tons and NOx emissions by 2,000 tons per year;

• The Ironmaking Division optimised the fuel structure from the source and replaced the sintered fuel with

low-nitrogen semi-coke;

• The construction of the 180-sintering denitration project was started, and the project is scheduled to be put into

use in April 2019. After the project is put into use, the NOx emissions will be cut by 2,000 tons/year.

Dust-control project:

• The “electric precipitator to bag filter” retrofitting projects for the No. 4 and No. 5 sintering machines were

completed and put into use, and the emission concentration after transformation was lowered to less than 10 mg/m3

(the special emission limit stipulated in Emission Standard of Air Pollutants for Sintering and Pelletizing of Iron and

Steel Industry (GB28662-2012) was 20 mg/m3);

• 15 production plants all replaced the ordinary bags with high-efficiency membrane filter bags.

Raised dust control project:

• The retrofitting project on using pneumatic transmission for dust removing and collecting in 38 sites of the first

ironmaking plant, the first steelmaking plant, the coking plant, and other plants was completed and put into use;

• The construction of the sealed blending material yard shelter of the second raw material factory, the sintering ring

cooler project, the ingredient area sealing project, and the lime kiln raw material sealing project were completed

and put into use;

• The reconstruction project for the disposal of refining steel slag of the first steelmaking plant and the second

steelmaking plant and fuel plant coal silos was started and is scheduled to be completed in May 2019.



Through continuous environmental transformation every year, the emission of each pollutant factor per ton of steel of

Nanjing Iron & Steel has gradually gone down for successive years, and all of the factors are lower than the Grade I

Benchmark Value of the National Evaluation Index of Cleaner Production in the Steel Industry (國家鋼鐵行業清潔生產評價指標I級基準值). The wastewater and waste gas emissions of Nanjing Iron & Steel are as follows:

2018 2017 2016

Grade I Benchmark

Value of the

National Evaluation

Index of Cleaner

Production in

the Steel Industry

Classification

Pollutant

factor

total

emissions

(ton)

the emission

per ton of steel

(kg/ton of steel)

Total

emissions

(ton)

The emission

per ton of steel

(kg/ton of steel)

Total

emissions

(ton)

The emission

per ton of steel

(kg/ton of steel)

The emission

per ton of steel

(kg/ton of steel)

Waste gas*

NOx 7,440.6 0.740 8,555.4 0.869 9,213.4 1.023 ≤0.9

SO2 2,805.5 0.279 2,923.6 0.297 3,602.5 0.400 ≤0.8

Organized

emissions of

particulate

matter 4,389.7 0.44 4,475.2 0.45 4,401.8 0.49 ≤0.6

WastewaterCOD 69.1 0.006 153.3 0.016 153.6 0.017 ≤0.06

NH3-N 2.27 0.0002 4.47 0.0005 5.30 0.0006 ≤0.006

* The Environmental Protection Tax Law of the PRC came into force on 1 January 2018. The law incorporates unorganized emissions of particulate matter into the environmental pollutant collection category of air pollutants. Therefore, the Group requested Nanjing Iron & Steel to calculate and report the unorganized emissions of particulate matter in 2018. In 2018, Nanjing Iron & Steel’s total unorganized emissions of particulate matter were 10,111.37 tons, and its total unorganized emissions of particulate matter per ton of steel was 1.006 kg.

In 2018, Nanjing Iron & Steel standardized and refined its management of general industrial solid waste and hazardous waste.

It upgraded and renovated the hazardous waste storage sites of all production units with high standards; it carried out special

investigations on general industrial solid waste, enhanced inspection of solid waste compliance of subsidiaries, conducted

standardized inspection and rectification of storage places and record ledgers, and extended the inspection to downstream sales

companies; through source control, it strengthened daily management of equipment, and reasonably extended the replacement

cycle to lessen the generation of general solid waste and hazardous waste; through end use, it properly treated the solid waste

generated and re-used resource solid waste in production to lower the amount of solid waste disposal.

ThE AMOUNT OF COMPREhENSIVE UTILIzATION AND DISPOSAL OF SOLID WASTES IN 2016-2018

way of Disposal 2018 2017 2016

General industrial solid waste (10,000 tons) Comprehensive utilization 520.96 651.00 485.80

Hazardous waste (ton)* Amount of standardized disposal 3,230 3,581 3,773

* In the year of 2018, 17,535 tons of electric furnace dust was produced and was comprehensively utilised by Nanjing Iron & Steel.

In 2018, through the continuous improvement of environmental protection management, environmental protection

technology improvement and facility renovation, Nanjing Iron & Steel ensured up-to-standard emissions of various pollutants

and achieved its annual environmental protection goal of a standard-reaching rate of 100% in supervisory monitoring.

In addition, it successfully passed the “Looking Back” inspection, the “unannounced Inspection”, the “Waste Clearance

Action” inspection, and the “Special Inspection on Black and Odorous Water” from central-government environmental

protection inspection authorities, as well as the “Cross Inspection on Law Enforcement in Eight Cities of Jiangsu Province.”



3 wEAlth ECOsystEm – hAinAn mininG

As a mining company that mines natural resources, Hainan Mining is always serious about geological hazards and environmental

governance, and it has invested financial and material resources for geological disasters prevention and environmental governance over

the years. In 2018, it invested RMB15.58 million for wastewater treatment, exhaust gas treatment and ecological restoration. Of the

total amount, RMB1.08 million was used for mine land reclamation. By planting nearly 300,000 trees of Hainan’s local varieties in the

stope and slag yards, the company reclaimed a mine area of approximately 13.78 hectares. With its discharge of wastewater, exhaust

gas, noise and solid waste being all up to the standard and all hazardous wastes being disposed of as required, the company did not

received any environmental penalties. Hainan Mining’s pollutant discharge indicators are as follows:

2018 2017 2016

Annual Output Finished iron ore (10,000 tons) 212.79 400.29 290.58

Wastewater

COD (ton) 53.91 35.03 36.41

COD emission intensity (ton/10,000 tons) 0.25 0.09 0.13

NH3-N (ton) 1.46 1.37 1.21

NH3-N emission intensity (ton/10,000 tons) 0.007 0.003 0.004

SS (ton) 65.61 24.95 26.81

SS emission intensity (ton/10,000 tons) 0.31 0.06 0.09

Solid wasteThe total amount of hazardous waste (ton) 12.46 23.5 23.3

Hazardous waste intensity (ton/10,000 tons) 0.06 0.06 0.08

In 2018, the amount and intensity of COD, NH3-N and SS emitted by Hainan Mining were both on the rise, which were

mainly attributed to the following reasons:

① Open-pit mining was completely converted to underground mining in 2018. As a result, there was more dust in the

beneficiation process, and the water consumption of the water washing process increased, which in turn led to an

increase in the amount of discharged wastewater;

② In 2018, typhoons and heavy rains occurred more frequently. Pollutants (including large amounts of COD, NH3-N

and SS) in surrounding farms and orchards were washed into the Hongqi tailing pond through heavy rain.

V Climate Changes Addressing and Resource Protection(i) Addressing climate changes

With intensified climate changes, the sea-level rise, upgraded extreme weather events, and GHG emission hitting a record high,

climate change has become one of the biggest challenges for human being. In response to climate changes, the Group joined

the uN Global Compact in July 2014 and made a global commitment in pursuing sustainable development. Hence, the Group

has participated in and boosted the realization of uN’s sustainable development goals both at the global and local level. As one

of the members of the Paulson Institute CEO Council, the Group joined the “Race to Zero” initiative initiated by the Paulson

Institute. In 2017, the Group started to draft and implement a low-carbon strategy, and selected five companies from its own

business segments to first conduct carbon emission data collection and comparative analysis. The Group extended the scope of

pilot by incorporating Wanbang of Fosun Pharma and another nine affiliated companies in 2018 and plans to establish the GHG

monitoring, reporting and verification (MRV) platform in 2019 to expand the coverage of GHG emission statistics to the whole

Group. Hence, this part is disclosed with the EHS&Q risk management Matrix and the scope of the pilot program.

The pilot companies planed and implemented initiatives to cut GHG emissions based on their characteristics:

• In recent two years, Guilin Pharma set up an energy management panel, specified its evaluation mechanism on

energy-saving, and conducted a series of technical transformation activities to improve the energy measurement

system, realize the transition from coal to natural gas and optimise key energy-using equipment;

• Wanbang and nine affiliated companies plan to launch a photovoltaic power generation program in the next five

years and complete at least five emission reduction measures each year;



• Club Med manages energy through Tech Care, its global environmental monitoring system, and has taken many measures

to lessen its impact on the climate including ecology architecture, renewable energy, transportation and eco-certification;

• In 2018, Nanjing Iron & Steel invested RMB50 million in energy-saving transformation and will launch a photovoltaic

power generation project in 2019;

• With a green design, the Bund Finance Center won LEED Gold Award and China Green Building Three Star

Certificate and is operated with its energy-saving design.

Pilot companies year

Direct

GhG

emission

(tonnes of

CO2e)

Energy

indirect GhG

emission

(tonnes of

CO2e)

total

GhG

emission

(tonnes of

CO2e) GhG emissions intensity

Guilin Pharma

2016 30,890.9 14,707.7 45,598.6

0.83 (Tonnes of CO2e/RMB10,000

output value)

2017 21,014.0 15,950.4 36,964.4


output value)

2018 13,253.9 14,923.4 28,177.3


output value)

Wanbang

2016 3,923.9 52,658.9 56,582.8


output value)

2017 3,119.4 57,431.9 60,551.3


output value)

2018 5,028.2 66,590.6 71,618.8


output value)

Club Med

2016 55,566 92,457 148,022

Carbon intensity par THD: 14.5

kgCO2e;

Carbon intensity per Hotel Day

Capacity: 11.5 kgCO2e

2017 53,057 89,701 142,758


kgCO2e;



2018 52,121 93,880 146,000


kgCO2e;



Hainan Mining

2016 12,400 69,118 81,518

0.0281 Tonnes of CO2e/tons of

finished iron ore output

2017 11,280 99,738 111,018



2018 11,075 92,557 103,632



Bund Finance Center

2016 148.4 4,386.4 4,534.8

2017 952.7 14,822.5 15,775.2

2018 1,970.3 15,606.8 17,577.1

Notes:

1. For pilot companies in China, GHG emissions and GHG emissions intensity are calculated based on the “Guide of Accounting and Report of Greenhouse Gas Emissions” released by China, with a reporting period from 1 January to 31 December of a calendar year. For companies outside China, GHG emissions and GHG emissions intensity are calculated based on the “GHG Protocol” released by



the World Resources Institute. The reporting period of Club Med is from 1 November of the year N-1 to 31 October of the year N. The GHG under calculation this time are the six GHGs stipulated in the “Kyoto Protocol,” namely, carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6).

2. The increase in GHG emissions and GHG emissions intensity of Hainan Mining in 2018 was mainly due to its production model shifting from open-pit mining to underground mining.

3. As the Bund Finance Center is still available for leasing and some buildings were still under decoration in 2018, it is unable to calculate the GHG emissions intensity reasonably, so the figure was not disclosed for the time being. The growing trend of Bund Finance Center’s GHG emissions was mainly due to the rise in renting rate.

(ii) Resource protection

In terms of resource protection, we selected enterprises with high resource consumption, namely Fosun Pharma, FTG,

Yuyuan, Nanjing Iron & Steel and Hainan Mining, to disclose their summary of significant information. The aforementioned

member companies didn’t have any issue in sourcing water.

1 hEALTh ECOSySTEM – FOSUN PhARMA

Fosun Pharma has always committed to the efficient utilization of social resources and adheres to the principle of maximizing

output with the minimum social resources. It focuses on natural resources conservation and social resources saving during

production and operation and never seek short-term profits for the company at the cost of social and natural resources, and

makes all efforts to ensure a harmonious relationship with the environment in the whole industrial chain of business operation.

The following statistics is about Fosun Pharma’s consumption of water resources and energy in 2018 compared with

previous two years:

2018 2017 2016

Total electricity consumption (MWh) 655,108.9 513,272.1 478,175.2

Total consumption of other energy sources (GJ) 5,394,870 4,648,903

(restated)

3,860,500

(restated)

Comprehensive energy consumption (GJ) 7,753,262 6,496,683

(restated)

5,581,931

(restated)

Comprehensive energy consumption intensity (GJ/RMB10,000

output value)

3.11 3.51

(restated)

4.43

(restated)

Total water consumption (10,000 m3) 995.9 951.6 876.9

Water consumption intensity (m3/RMB10,000 output value) 3.99 5.14 5.99

Note: The translation of energy coefficients calculated by Joule or times is based on the Appendix A to General Rules of Comprehensive Energy Consumption GB/T 2589-2008 (《綜合能耗計算通則》GB/T 2589-2008). Data of 2016 and 2017 were also restated on the same base.

(1) Energy use and consumption

In 2018, Fosun Pharma’s comprehensive energy consumption amounted to 7,753,262GJ, an increase of 1,256,579GJ

or 19.3% from 2017. The comprehensive energy consumption intensity was 3.11GJ/RMB10,000 output value, which

reduced by 0.4GJ/RMB10,000 output value as compared with 2017.

(2) use of water resources

In 2018, Fosun Pharma’s total water consumption reached 9,959,000 tons, an increase of 4.7% from 2017, which was

mainly due to the addition of new companies to Fosun Pharma and increased capacity of some companies. Fosun Pharma

attaches great importance to the impact of water resource consumption on the environment and has taken various of

water-saving measures, such as upgrading water saving instruments, reusing reclaimed water, concentrated water and

condensed water, improving production and cleaning process, and increasing chilled water units. As a result, Fosun

Pharma saved 179,000 m3 of water, accounting for 1.79% of the total water consumption for the year.



(3) use of packaging materials

Fosun Pharma directly and/or indirectly consumes various packaging materials during product manufacturing,

transportation and sales as well as providing medical services. The top three packaging materials by nature and

actual consumption are papers, glasses and plastics.

Adhering to the principles of “controlling from source, optimizing layout, reducing energy consumption and

pollutant discharge”, Fosun Pharma has been actively promoting reduction in use of packaging materials and taken

measures mainly including (but not limited to):

• To intervene from the source of product packaging to reduce excessive and unnecessary packaging;

• To conduct classification management of packaging materials from unpacking of incoming materials and

reuse some recyclable packaging materials internally;

• Some member companies partner with upstream and downstream clients, replacing disposable material box

with recyclable boxes, to reduce the consumption of recyclable boxes during material transportation.

2 hAPPINESS ECOSySTEM – FTG

Club Med, which accounts for the largest proportion in FTG’s assets, is used as an example to disclose FTG’s resource

consumption.

(1) Energy Management

Club Med aims to reduce carbon intensity linked to the energy use of buildings. In 2018, 17% of electricity

consumed came from renewable sources (EDF green certificates and hydropower produced in the village) and in

choosing the renewable energy equipment, Club Med focused on already mature and high-yield technologies.

• 4% of the villages were equipped with photovoltaic panels (6,000 m2) and 28% of villages were equipped

with solar thermal panels (about 3,000 m2) corresponding on average to about 20% of needs in sanitary hot

water.

• 23% of villages had refrigeration heat recovery units (26% in 2017).

• Heat pumps were installed in 30% of villages (15% in 2017).

(2) Water Management

To control water consumption, Club Med has taken the following actions:

Reusing recycled water, curbing watering needs. Due to the fact that the operations are often in far-flung locations,

from very early on Club Med has frequently had to “produce” its own water by drilling wells or through desalination

(seawater or brackish groundwater). Water recycling is a common practice in the villages, especially those with

green spaces where virtually all treated water is reused for irrigation. 39% of villages (excluding ski resorts) recycle

their water for irrigation, 50% of villages (excluding ski resorts) use their own or purchased recycled water for

irrigation.

Implementation of Efficient Equipment. Village facilities and equipment have been designed to control water

consumption (flow regulators on taps, pressure reducers, water-saving flushing, centralized irrigation management

systems, drip irrigation, etc.). In addition, maintenance work is performed regularly at all villages, such as repairing

leaks in the water supply etc.



3 hAPPINESS ECOSySTEM – yUyUAN

In 2018, Yuyuan completed a major assets reorganization and the real estate development projects under its management

are committed to the concept of green design and green building. Yuyuan has incorporated the concept of environmental

protection and health into the project development process. At the same time, as a global enterprise, Yuyuan’s overseas

projects also strive to perform energy conservation in buildings according to the requirements under the European and

American laws and regulations and of the markets. Yuyuan’s new green buildings in 2018 are as follows:

Project name

total GFA

(10,000 m2) Functionality Green design certification level

Beijing Tongzhou IX-05 Project 21.3 Commercial, office Beijing Two Star Green Building (北京市綠建二星), LEED Silver Certification

standards (Pre-certification)

Beijing Tongzhou IX-08 Project 18 Commercial, office Beijing Two Star Green Building, LEED Silver

Certification standards (Pre-certification)

Wuhan Hanzheng Street

T1/T2 Towers

124 Commercial, office,

residential apartment

LEED Gold Certification (Pre-certification)

Jinan CBD Project 54.71 Commercial, office,

residential apartment

A1-Grade and Thee-Star Green Office

Building (A1超甲辦公樓綠建三星)

(Pre-certification)

Other Two-Star Green Buildings

(Pre-certification)

In the operation course of its own commercial and office buildings, Yuyuan has actively and effectively managed water and

electricity, recorded monthly data on consumption of water, electricity and gas, and strived to seek energy conservation and

consumption reduction to minimize energy consumption and environmental impact. In 2018, Yuyuan’s total investment in

energy saving, water conservation and environmental protection reached RMB4.53 million.

In the process of real estate development, Yuyuan has actively reduced the impact on the surrounding environment,

diminished the waste of resources and adopted measures to save energy and reduce consumption. Taking the construction

management of the south and north plots of the southern headquarters as an example, the actions taken for energy

conservation, water conservation, and resource recycling include (but not limited to):

• Reuse of templates and recycling of short tube materials can reduce waste;

• LED energy-saving lamps provide the lighting for the construction of the buildings;

• Pump the water accumulated in the basement for reuse;

• Install atomized spray system and washing equipment for slag vehicles, use mist cannon trucks, and be equipped

with online PM2.5 monitor to monitor the dustproof effect in real time.




Nanjing Iron & Steel signed a carbon emission reduction purchase agreement with the World Bank, which was the first

project in the steel industry of the “carbon financing” of the World Bank. The contract term of the project spans from 2010

to 2019, which is divided into 10 phases. At present, eight phases of inspections and contract performance have been

completed.

Nanjing Iron & Steel cherishes fossil energy and water resources. In 2018, it carried out a lot of energy saving and

water conservation work to further reduce energy consumption and water consumption. It invested RMB50 million in

energy-saving renovation. Its annual quantity of energy saving is about 30,000 tons of standard coal, and the energy

consumption per ton of steel continues to decrease. In order to reduce the dependence on fossil energy, from 2017

to 2018, Nanjing Iron & Steel conducted the on-site investigation and the preliminary design for a photovoltaic power

generation project which will be developed in 2019. It made some breakthroughs in the specific technology of water-saving,

and has achieved an annual saving quantity of 890,000 tons of industrial clean water and 16.11 million tons of circulating

water. The water consumption per ton of steel decreased by 0.6 tons compared with that over the same period of last year.

All of its indicators are superior to Grade I benchmark value of the national evaluation index of cleaner production in the

steel industry.

The completed work of water conservation and energy saving includes (but not limited to):

Water conservation projects

• The production plants reconstructed the underground pipe network to the overhead pipe network, reduce water

leakage on the site, eliminate the discharge of the cooling water, and the length of the pipeline replaced during the

year reached about 5,000 meters;

• Reduce the amount of the reused water and fresh water by strengthening source water reduction and internal

drainage quality control.

Energy saving projects

• The upgrading of the fuel plant’s cooling tower turbine; the second sintering plant’s frequency conversion

transformation and annular cooling and air leakage control; the upgrading of electrode automatic adjustment

system of the third steelmaking plant’s electric furnace; the spraying on the 50,000 kw No.2 furnace; the phase

transformation of No.3 furnace in the power plant; the air leakage repair of the first sintering plant’s annular cooler;

the third steelmaking plant’s water bag capping; the small bar factory’s frequency conversion transformation; the

upgrading of the induced draft fan on the strip steel plant’s heating furnace; the restructuring of oxygen production

and low-pressure oxygen-enrichment and other projects.

The water consumption and energy consumption indicators of Nanjing Iron & Steel are as follows:

indicator name 2018 2017 2016

Grade I Benchmark

Value of the National

Evaluation Index of

Cleaner Production in

the Steel Industry

Water consumption Fresh water consumption per ton

of steel (m3/t of steel) 1.95 2.57 3.15 ≤3.5

Energy consumption Comparable energy consumption

(ton of standard coal/t of steel) 0.489 0.5080 0.5274 –



Through unremitting efforts, Nanjing Iron & Steel won the title of “Green Factory” at the national level in 2018, and its

No. 2 Converter of the First Steelmaking Plant and No.5 Blast Furnace of No.2 Ironmaking Plant respectively won the titles

of champion furnace and winner furnace in the “National Energy Saving and Consumption Reduction Competition for Key

Large Energy-consuming Steel Production Equipment”, and Nanjing Iron & Steel became the “National Energy Saving and

Emission Reduction Demonstration Base in the Metallurgical Industry” and the first “Pilot unit for the National Circular

Economy Standardization” in the steel industry of China.

5 WEALTh ECOSySTEM – hAINAN MINING

Hainan Mining continued to make efforts in energy saving and emission reduction, and divided the target amount of energy

saving and consumption reduction so that each factory and workshop took a share. Hainan Mining actively carried out

comprehensive projects of water resources utilization. Its resource use and energy consumption situations are as follows:

Resources use, energy consumption 2018 2017 2016

Annual output: Finished iron ore output (10,000 tons) 212.79 400.29 290.58

Industrial electricity consumption (MWh) 175,600 189,220 87,190

Industrial electricity consumption intensity (kWh/t) 82.52 47.27 30.01

Gasoline (ton) 137.15 198.74 240.63

Gasoline consumption intensity (ton/10,000 tons) 0.64 0.50 0.83

Diesel (ton) 3,388.69 3,394.38 3,709.91

Diesel consumption intensity (ton/10,000 tons) 15.93 8.48 12.77

Water consumption (ton) 439 332 210

Water consumption intensity (ton/10,000 tons) 2.06 0.83 0.72

Recycled water utilization rate 89.6% 91.8% 91.5%

The energy consumption by Hainan Mining mainly came from industrial electricity consumption. In 2018, the industrial

electricity intensity increased compared with that of the previous two years, and the main reason was that the production

model of Hainan Mining was changed completely from open-pit mining to underground mining in 2018.

VI health and Safety ManagementThe Group regards health and safety management as a top priority and has set a goal of “zero occupational disease” and “zero

occupational death”. A safety production responsibility policy has been formulated, which clarifies the punishment mechanism

of production accident, implements “the person in charge is responsible” and “regional responsibility system”. The objects of

punishment include the top management of the Group, the top management of the business segments, and the top management

of the core holding companies, and the persons in charge of the production plants, and such punishments shall be strictly

supervised and implemented by the EHSQ & Supply Chain & Project Operation Department of the Group. In order to ensure the

legal and compliance operations of companies under the Group, effectively reduce and eliminate the risk for EHS, and deliver

on the Group’s commitment of social responsibilities with respect to EHS, the Group launched the “Manual of Fosun Group EHS

Management System” and the framework standards for evaluating the system in 2013. This system is based on the occupational

health and safety management system, environmental management system and national safety production standards, including 5

major parts, namely systemic management elements, environment, safety, occupational hygiene, firefighting and loss prevention.

According to the assessment score of each item, the actual management status of the EHS management level, equipment,

technology and personnel operations of the enterprises under the Group are classified into 5 score levels (0-1.5, 1.6-2.5, 2.6-3.5,

3.6-4.5, 4.5-5) based on which a quantified assessment will be conducted. Enterprises with relatively low scores (less than 1.5)

will be classified as “red light” enterprises and brought under close supervision. At the same time, linking the audit results with

the economic evaluation of the leaders of the units under review, it effectively ensures that the EHS management standard system

is effectively implemented in companies under the Group. While actively implementing the EHS management system framework

standards, the Group also actively encourages its subsidiaries to obtain the occupational health and safety management system

certification and national safety production standardization certification. As of the end of the Reporting Period, 26 enterprises

had obtained the occupational health and safety management system certification, and 31 enterprises had obtained the Grade II

national standardization certification of safety production. During the Reporting Period, the Group strictly abided by the relevant

laws and regulations such as “Safe Production Law of PRC” (中華人民共和國安全生產法), “Prevention and Control of Occupational

Diseases Law of PRC” (中華人民共和國職業病防治法), “Labor Law of PRC” (中華人民共和國勞動法), etc.



Based on the original regulations of environment, health, safety & quality management, the Group has formulated the new

environmental, health and safety assessment rules for enterprises, business departments and functional teams, which will be

officially implemented in 2019:

(1) If there are any incidents of safety and quality, environmental pollution, violations of the disciplines, and negative media

reports, having a bad impact on the Group, or the relevant enterprises, business departments and functional teams fail

to properly process the crisis events, their scores will be deducted by the Board upon assessment and review according to

the severity of the consequences, and the deduction range is 1 -10 points; if the consequences are severe, their annual

performance bonus for the current year can be cancelled.

(2) If the partners committing major violations such as major casualty accident, major equipment accidents, major fire accidents

are punished by the regulatory or judicial authorities, their performance for the current year will be zero.

The Group is committed to providing employees with a safe and comfortable working environment. In order to link up with

the international safety performance indicator system, the Group issued the “Management Procedures for Occupational Health,

Safety and Environmental Protection Performance Indicators under the Fosun Group Special Safety and Environmental Protection

Standards” in September 2016, requiring all companies under it to report EHS performance indicators such as lost-time accidents

and fatalities and the frequency of lost-time injuries, and established the online reporting system to further enhance and refine the

EHS management.

In 2018, the Group did not have any full-time employees who died due to work. From the overall trend, the lost-time injury rate in

all segments also showed a declining trend year by year, and was under better control. In the past three years, the lost-time injury

rates of full-time employees of the Group’s major invested companies, namely Fosun Pharma, Nanjing Iron & Steel, Hainan Mining,

and Yuyuan, were as follows:

0.58

0.42 0.45

0.16

0.29

0.23

0.13

0.57

0.24 0.24

2016

2017

2018

0 0

Total lost-time injury rate (1 million of working hours)

FosunPharma

Yuyuan Nanjing Iron& Steel

HainanMining

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Note: The formula for calculation of the total lost-time injury rate (1 million of working hours) of the Group is as follows: The total lost-time injury rate (1 million of working hours) = (Number of lost-time injury accidents/the total number of actual working hours) ×1,000,000

The Group attaches great importance to the rectification of potential hazards in safe production, and conducts supervision over and

audit of the safety costs of enterprises in high-risk industry to ensure that enough spending is to be made.

safety Production investment (RmB)* 2018 2017 2016

Fosun Pharma 38.43 million 39.2 million 31.6 million

Nanjing Iron & Steel 74.0 million 33.0 million 30.0 million

Hainan Mining 12.3 million 9.9 million 10.2 million

* Yuyuan provided expenses for its real estate projects to carry out safe and civilized construction measures fee in strict accordance with national standards and required its contractors to provide expenses for safety measures according to the Interim Measures for the Financial Management of Safe Production Expenses of Enterprises in High-risk Industries (Cai Qi [2006] No. 478).



In terms of occupational health and safety, the Group selects Nanjing Iron & Steel, Hainan Mining and Yuyuan with high

occupational health and safety risks in the EHS&Q risk management matrix for summary disclosure of important information.


Nanjing Iron & Steel puts the health and safety of its employees first, makes efforts to firmly establish the awareness of

danger, adheres to safety hazard checks, keeps the bottom line preventing major accidents, and sets up the goals with

zero casualty accident, zero major production accident, zero major equipment accident, zero major traffic accident, zero

major fire and explosion accident and zero major poisoning accident. In 2018, Nanjing Iron & Steel revised the “Safety

Responsibility Policy for All Employees” and formulated the “Measures for Economic Assessment and Investigation of

Safety Management Responsibility” which clearly states the safety performance assessment, and the results of such

assessment are one of the important contents for evaluating the performance of the production management and are

related to the granting of bonus. Nanjing Iron & Steel insists on taking the Group’s EHS management system as its starting

point, continues its investment in occupational health and safety, and adheres to the implementation of intrinsic safety

management and major hidden danger solution.

(1) Safety culture construction

Nanjing Iron & Steel establishes the EHS culture with “management emphasis and employee participation”. Focusing

on the theme of “fully implementing the main production safety responsibility of an enterprise”, Nanjing Iron &

Steel conducted a large number of safety, emergency and occupational health activities such as “Safe Production

Month”, “Safety Help Day”, “Safety Star” rating, and “Emergency Skills Competition”, “Ankang Cup”, “Sharing

One Safety Accident Each Day”, Safety Hazard “Exposure Platform”, safety Oath, etc., and completed extensive

publicity of the aforesaid activities. In addition, safety training was carried out at different levels, and a total of more

than ten thousand trainees were involved in the training throughout the year, including management personnel,

full-time safety officers, hazardous chemicals management personnel, special operating personnel, related parties

and migrant workers. Nanjing Iron & Steel ensured that the certificate-taking employment rate is 100% and the

safety training rate is 100%.

(2) Take safety control measures

In order to discover and solve the hidden safety dangers from the source, Nanjing Iron & Steel invested RMB60

million in the rectification of safety hazard, and organized several internal and external professional third-party

organizations to assess the position risk and evaluate the safety situation, and formulated risk reduction and control

measures based on the assessment findings. All observations and minor non-compliance have been corrected.

• Nanjing Iron & Steel took special management measures such as gas management, molten metal

management, limited space operation management, fire operation management, and management of major

hazardous source warehouse areas for high-risk operations;

• Nanjing Iron & Steel strictly implemented the three-level spot check system for special equipment, and

carried out special inspections of special equipment such as lifting machinery, elevators, pressure vessels and

pressure pipes, and the pass rate of special equipment in inspection is 100%;

• Nanjing Iron & Steel conducted 156 site emergency response trainings and drills throughout the year, and

revised and improved the emergency plans, including 28 comprehensive plans, 30 special plans, and 88

on-site response plans;

• Nanjing Iron & Steel conducted lots of mechanical protection transformations, and used robots to replace

personnel in hazardous areas for operations, which reduced human-machine contact and lowered the risk of

mechanical injury, and used intelligent technology and IOTs means to discover and eliminate unsafe human

behavior and the unsafe state of the objects, thereby improving the level of safety management.



(3) Safety supervision

Nanjing Iron & Steel strictly conducted the safety supervision performance evaluation and focused on the

implementation of safety management control of high-risk operation projects on the monthly basis. In the middle

and at the end of the year, the Safety, Energy and Environment Department of Nanjing Iron & Steel respectively

conducted comprehensive audits of environment, health and safety for 4 business divisions and 24 production plants

during 50 days. In November 2018, the Group’s EHSQ & Supply Chain & Project Operation Department respectively

conducted audits of environment, health and safety in the middle bar plant and the bar material plant and the

Second Ironmaking Plant of Nanjing Iron & Steel. The safety supervision provided a strong guarantee for the safety

management of Nanjing Iron & Steel.

(4) Safety management of related parties

Nanjing Iron & Steel attaches great importance to the safety management of related parties and considers the safety

of relevant parties as important as that of full-time employees.

• Nanjing Iron & Steel formulated management systems for related parties, of which the “Measures for

Integrated Management of Labor Service and Outsourced Personnel” requires “consistency in eight

aspects”, i.e. keeping consistency in appraisal and accountability, personnel management, technical training,

operating standards, work requirements, safety activities, pre-work meetings, and violations punishment

for related parties and full-time employees; while the “System of Review on Dangerous Operation Scheme

and Construction Permit Approval” requires strengthening the review of the safety conditions before

construction, and prohibits unqualified projects from construction;

• Nanjing Iron & Steel assessed the performance of related parties, safety being one of the KPIs, and ceased

to renew contracts with the parties at the bottom of the assessment list;

• Nanjing Iron & Steel controlled the operation of relevant parties in the whole process, strengthened the

fixed-point monitoring of dangerous operations and performed inspections by regions and specialties;

• Nanjing Iron & Steel increased the safety awareness and safety management capability of related parties,

and carried out special safety training and exams for the leaders, project managers and safety production

management personnel of units engaged in labor service, construction, outsourced maintenance,

transportation maintenance, and specialized operations, as well as refractory material suppliers, supervision

companies.

(5) Safety management performance

Each production plant of Nanjing Iron & Steel continued to work on safety production standardization, and 23

production plants of 8 units have obtained the Grade II national standardization certification of safety production.

In 2018, Nanjing Iron & Steel successfully passed 23 safety inspections with high intensity and at high frequency by

relevant authorities at the national, provincial and municipal levels. Nanjing Iron & Steel had no major safety hazards

and no obsolete or backward technology. In 2018, no full-time employee died due to work, and the deaths of

related parties has dropped to one person.



(6) Occupational health management

Nanjing Iron & Steel puts emphasis on the health of employees, and its work on occupational health management is

as follows:

• Nanjing Iron & Steel prevented occupational diseases in the very beginning. It has invested RMB14.04

million to purchase personal protective equipments for employees throughout the year, and carried out

“three synchronization system”, i.e. using occupational disease prevention facilities in all new, modified and

expanded projects with occupational disease hazards;

• The occupational hazards of Nanjing Iron & Steel are mainly dust and noise. In 2018, a series of occupational

hazard control measures were launched, including (but not limited to): the lime dust treatment project for

the Second Sintering Plant, the No. 2 fuel dust removal, expansion and reconstruction project for the First

Sintering Plant, the integrated noise control project for the Second Ironmaking, etc.;

• To enhance the occupational health awareness of all employees, the senior management and occupational

health management personnel of Nanjing Iron & Steel and related parties were strictly required to receive

training and obtain certificates through examination. Each plant conducted trainings for ordinary employees,

and thus a total of 7,223 full-time employees and 9,050 employees of related parties were trained;

• In 2018, it invested RMB2.3 million for occupational health surveillance, and strengthened the occupational

health management of employees from related parties, and issued the “Notice on Further Strengthening

the Occupational Disease Prevention and Occupational Health Monitoring of Labor Services and Cooperative

units”. All employees who exposed to occupational hazards received annual occupational health checks.

The occupational health check involved 6,371 full-time employees and 12,207 employees from related

parties. The results showed that there were no occupational diseases, and 29 of them who had occupational

contraindications have been transferred to other positions in time;

• It was awarded the title of “2017 Advanced unit for Prevention and Control of Occupational Diseases in

Jiangsu Province” issued by Jiangsu Provincial Centre for Disease Control and Prevention.

Safety trainingPersonal protective equipment training



2 WEALTh ECOSySTEM – hAINAN MINING

Hainan Mining values safety production and occupational disease prevention and has set a goal of “zeros in five aspects”:

zero accidental death, zero serious injury, zero major equipment accident, zero major fire accident, and zero new occupational

disease, and identified the requirements of “100% in five aspects”: 100% of the accidents reporting rate, 100% of the rate

of special operators with certificates, 100% of the pass rate of new employees’ safety training, 100% of the rectification rate

of general hidden peril, and 100% of the signing rate of safety responsibility certificate by all employees and related parties.

On 29 December 2017, the President of Hainan Mining and 11 executives of its second-level units (departments) signed the

“2018 Safe Production Responsibility Certificate”, which decomposed the safety assessment indicators, specified the responsible

person for safety production, and linked the safety rewards and punishments with the results of safety assessment on responsible

persons, and implemented the “one-vote veto” system in various evaluations for advanced performance. In 2018, Hainan Mining

changed its organizational structure, and at the same time completely sorted out the original rules and regulations on safety and

environmental protection, among which 51 rules and regulations have been revised and improved. A total of RMB12.28 million

was invested in safety production and occupational health management throughout the year.


• Hainan Mining intensified EHS trainings and expanded the trainees to the principal heads, safety

management personnel, new recruits, transferees from other positions, team leaders and post operators of

Hainan Mining and its second-level units, and 4,205 person-times were trained throughout the year;

• Hainan Mining launched activities such as “Safety Production Month”, “Zero Incident in 100 Days”, “Ankang

Cup” Competition, “Safe Production Law” Publicity Week, “Safety Knowledge Competition”, “Job Safety

Skills Competition”, “Creating Safety Production Excellent Team” and other activities.

(2) Take safety control measures

• Hainan Mining carried out company-wide hazard (harmful) factor identification and risk assessment,

classified the identification unit of the entire production system according to the characteristics of the

production process and operation mode, screened and identified various hazard (harmful) factors in each

position and each production link in an all-round and careful way, and firmly and effectively promoted the

construction of the company’s dual prevention mechanism;

• Hainan Mining implemented safety projects such as flood control projects, flood control ditch cleaning, slope

protection projects, and stope backfilling works.

(3) Safety supervision

The senior management of Hainan Mining leads a team to conduct an inspection every half a year. The safety and

environment department carries out special inspections every month and daily safety inspections. Each unit conducts

monthly inspections led by leaders, and the company’s special group conducts semiannual inspections, quarterly

inspections and temporary inspections. In the meanwhile, it will strengthen the internal audit of the EHS system.


The goal of “zero accidental death, zero serious injury, zero major equipment accident, and zero major fire

accident” was reached. There were 2 minor injuries in 2018, one injury fewer than 2017.

(5) Occupation health management

• The main occupational hazard factors of Hainan Mining are dust and noise. The company has put an annual

investment of RMB2.75 million to strengthen the occupational hazard detection of workplaces, actively

improved the working environment of employees, and built new facilities such as soundproof rooms, dust

collectors, device for wet operation and airtight covers to reduce the exposure of personnel to noise, dust

and other harmful factors;



• Hainan Mining launched the publicity week of “The Law on Prevention and Control of Occupational Diseases”,

and disseminated relevant knowledge on occupational disease prevention and treatment to employees;

• All employees exposed to occupational hazards accepted the annual occupational health check. It has arranged

for a total of 2,553 employees and off-the-job employees who are and were exposed to occupational hazards to

have occupational health checks. There was no new occupational disease case found in 2018.

3 hAPPINESS ECOSySTEM – yUyUAN

Yuyuan attaches great importance to EHS management on its real estate construction projects, and makes efforts to firmly

establish the awareness of danger, adheres to safety hazard checks, and keep the bottom line, i.e. no deaths and major

fire accidents. In 2018, the responsible personnel of real estate construction at all levels signed the “Safety Responsibility

Agreement”, and continuously improved the EHS management system and guidelines for safe and civilized construction

operations. On the basis of the original EHS system and guidelines, the “Safety Management System for General

Contracting”, “Guidelines for Safe and Civilized Construction Operations”, “Details on the use of Safe and Civilized

Construction Measures Fee” and “Guidelines for Construction of Smart Sites” have been added.


A life-cycle EHS culture has been built up. A large number of safety, emergency and occupational health activities

have been carried out, such as “Safety Production Month”, “119 Fire Service Day”, “Excellent Teams and Individuals

on Safety Production” and other activities. It has organized standard safety operations training, deep foundation

works training and other safety trainings to ensure 100% safety training rate.

(2) Safety control

In addition to the internal operational safety inspections on a year, a quarter, a month, and a week basis, a

third-party professional organization was engaged to evaluate the safety status of the project site, general

contracting safety scheme, and supervision safety measures. Moreover, intelligent means were adopted for safety

management, which developed risk reduction and control measures through comprehensive inspection and

multi-dimensional assessment to reduce potential hazards.

safety production knowledge competition awardsafety production standardized site award



(3) Key safety supervision of high-risk large projects in multiple businesses

For a construction project with an area of more than 200,000 square meters involving multiple businesses, such as:

Wuhan East District, Chengdu Financial Island, Chongqing Jiefangbei, Guangzhou South Headquarters and other

commercial complexes, super towers, Grade A office buildings, etc., Yuyuan analyzed 56 major security risk nodes in

different engineering stages, and formulated safety management and control measures according to the phases of

earth excavation, pile foundation enclosing, main body, second structure, installation, decoration and landscaping,

so as to achieve the goal of no major safety accidents throughout the year.

(4) Safety management of related parties

Yuyuan pre-checked the safety qualifications and capabilities of related parties to ensure that the rate of related

parties’ employment with certificate is 100%. The contract also expressly set out the safety standards, the

investment of safety measures, and the work contents and responsibilities at different stages for the related parties,

so that EHS control was integrated into the project life cycle.


As of the end of 2018, there were no casualties. In 2018, the Tongzhou Canal 06 plot in Beijing was awarded the “Site

of Standardized Safety Production of National Construction Project” issued by the Construction Safety Branch of China

Construction Industry Association. Shanghai Songting 6-2 Project was on the list of Shanghai Safety and Civilization Site,

and Chengdu Financial Island Phase II was recognized as the Standardized Site in Sichuan Province in 2018.

(6) Occupation health management

Yuyuan pays attention to the occupational health of the on-site employees, and specifies the details and standards

of personal protective equipment necessary for occupational health in the contract’s safety measures. In addition,

the welders, workers of internal and external walls and other positions involving occupational hazards are provided

with pre-post occupational health training and receive hazard notification.

VII. Product Liability1 qUALITy EMPOWERMENT – PROMOTE LEAN SIx SIGMA PROJECT

The Group issued a document in March 2017 to formally establish the Lean Six Sigma Management Promotion Committee

and working group, and selected Fosun Pharma, Nanjing Iron & Steel, Hainan Mining and other enterprises to conduct pilot

projects. In 2018, the Group has carried out a total of 494 Lean Six Sigma projects and generated direct economic benefits

of more than RMB193.6 million (based on the results of financial audits for related business entities). Indirect benefits to

the Group include all-round improvement of performance, certain breakthroughs in lean production, lean supply chain,

lean marketing and lean design of new factories. It has also trained a group of Lean Six Sigma management talents for the

Group, adding 10 black belts and 147 green belts.

2 qUALITy MANAGEMENT

In order to implement the grand strategy of “Centred around family, deeply rooted in china, innovating a global happiness

ecosystem” and strengthen the product quality and safety management of the Group’s member enterprises, the Group

updated the “Implementation Rules for Major Quality Accident Reporting of Fosun Group” (復星集團重大質量事故上報實施細則) in 2016, and issued the “Fosun Group’s Guidelines on the Establishment of Product Recall System of Member

Companies” (復星集團關於各企業建立產品召回制度的指引) in 2017. The Group requires that a management system

must be established for products in those industries for which the state has issued product management measures, such

as medicines, food, medical equipment, children’s products, etc., as well as the iron and steel and clothing industries.

Each member company has established and improved their own product management systems in compliance with



product management measures practiced in relevant countries or industries and according to the Group’s above product

management system guidelines. The Group established the Customer Service and Product Quality Supervision Department

in 2018 and issued the “Regulations on Global Customer Service and Product Quality Supervision Management” (全球客戶服務與產品質量監督管理規定) to further promote the Group’s user experience and product strength. During the Reporting

Period, the Group strictly abided by relevant laws and regulations such as the “Product Quality Law of PRC” (中華人民共和國產品質量法) and the “Food Safety Law of PRC” (中華人民共和國食品安全法), etc.

Quality investigation and surprise checks are conducted to drive member companies to improve their quality management

system. Measures taken include but not limited to incoming stock examination, production process control, finished

product check and logistics monitoring. Key quality indicators of each company are established after taking into account

the characteristics of that company and are tracked on a monthly basis. In 2018, the quality management of member

companies of the Group achieved good results, especially in terms of quality system establishment and certification,

supplier management, product safety mechanisms, quality and safety training, user complaint/return goods handling,

customer satisfaction, etc. In terms of quality management, we selected companies with high quality risk in the EHS&Q

risk management and control matrix diagram, namely, Fosun Pharma of Health Ecosystem, Nanjing Iron & Steel of Wealth

Ecosystem, Yuyuan and FTG of Happiness Ecosystem as representatives to elaborate.

hEALTh ECOSySTEM – FOSUN PhARMA

(1) Provide quality products and services

In 2018, Fosun Pharma’s domestic pharmaceutical member companies were sampled 458 times by the government

regulators and no nonconformity reports were reported. In 2018, no products of member companies were officially

declared as unqualified products. In 2018, 11 member companies engaging in medical devices in China accepted

and passed a total of 37 inspections of various authorities. Shanghai Fosun Pharmaceutical Industrial Development

Company Limited successfully obtained the supplementary approvals for the applications for meloxicam tablets in

January 2018, and officially became the first pilot company in Shanghai to obtain the MAH approval.

(2) The establishment and certification of quality system

In 2018, Fosun Pharma’s domestic pharmaceutical member companies accepted a total of 102 official inspections

and successfully passed 101 times. Among them, the GMP certificate of Chongqing Pharmaceutical Industry Research

Institute Co., Ltd.’s aripiprazole bulk drug was revoked. Then it has completed the rectification work, and gained

the GMP certification once again in March 2019. At the of the end of 2018, a total of 70 preparation production

lines and 60 active pharmaceutical ingredient (API) products of Fosun Pharma’s domestic pharmaceutical subsidiaries

received China 2010 GMP certification with a total of 50 certificates.

With the implementation of internationalization strategy of Fosun Pharma, its subsidiaries significantly step up

the pace of internationalization. As of the end of the Reporting Period, 11 APIs of Fosun Pharma’s domestic

pharmaceutical subsidiaries have gained the certification from the national regulatory authorities in various countries

such as the FDA of united States, European union, Japan’s Ministry of Health, Labor and Welfare (MHLW) and

Germany’s Federal Ministry of Health. 1 solid oral dosage production line, 3 injection production lines and 5 APIs

of Guilin Pharma passed the inspection for WHO-PQ Certification. 1 solid oral drug production line of Yao Pharma

received the certification from Health Canada and the FDA of the united States. Among them, Gland Pharma,

an overseas member company of Fosun Pharma in India was recognized by the world’s major regulatory market

regulators in 2018, including the uS FDA, Eu EMA, uK MHRA, Japan PDMA, Australia TGA, Germany BGV, Brazil

ANVISA, passed various inspections for GMP Certification for a total of 12 times.

(3) Supplier management

All subsidiaries of Fosun Pharma have formulated their supplier management procedures and established the supplier

quality annual review system, and perform various supplier audits (such as on-site quality audits, questionnaire audits

and phone audits) prior to determining a qualified supplier based on the principles of fair bidding, procurement through

tender and quality as first priority, to ensure the quality and safety of drugs from the source.



(4) Product safety mechanism

Fosun Pharma values quality risk management throughout the life cycle of its products and has strict quality and safety

management mechanisms in place in terms of product R&D, clinical trial, technical transfer, production and manufacturing,

marketing and sales, etc. to ensure the safety in the process of R&D, production, sales, recall or market withdrawal of medicinal

products and medical devices. Fosun Pharma cares about medication safety for patients and values the strict monitoring

and reporting of adverse drug reactions as well. In 2018, Fosun Pharma continued to strictly implement the “Adverse Drug

Reaction Reporting and Monitoring Management System” and asked each of its pharmaceutical member companies to report

adverse drug reactions as soon as they become aware of the adverse drug reactions. Pharmaceutical subsidiaries implement

“zero-reporting” management for adverse reactions according to the requirements of the adverse reaction monitoring

procedures of Fosun Pharma. That is, pharmaceutical member companies shall submit the adverse reaction information sheet to

the Group in the beginning of every month even if there is no adverse reaction. For new or serious adverse reactions, reporting

must be completed within prescribed period, and pharmaceutical subsidiaries are required to report to the management

department of the Group within prescribed period to ensure that all information of adverse drug reactions are collected and

handled in a timely manner. Fosun Pharma also conducts intensive monitoring on key products and requires the pharmaceutical

member companies to take proactive measures to minimize the incidence rate of adverse reactions.

In 2018, Fosun Pharma deployed a life-cycle of pharmacovigilance management. From the development of new drugs

to the marketing of drugs, it has established a comprehensive pharmacovigilance system with reference to international

standards. From the aspects of organizational construction, process system construction, drug alert data management

system construction and quality system construction, the functions of pharmacovigilance operations, scientific support to

pharmacological alert, pharmacovigilance compliance and education have been improved.

In 2018, in strict accordance with the requirements of the “Adverse Drug Reaction Reporting and Monitoring

Management Measures” of China, the pharmaceutical member companies of Fosun Pharma have collected adverse drug

reactions information and have reported all the information in a timely manner. There were no adverse reactions events

or deaths caused by drugs with quality defects. A total of 65 adverse drug reactions events collected voluntarily by Fosun

Pharma were truthfully reported online to the national adverse reaction database and properly handled.

(5) Quality training

Fosun Pharma focused on quality training. In order to continuously enhance the standards for quality management

systems, facilitate the employees to absorb the latest quality ideas, and consolidate standard operating procedures,

Fosun Pharma has further promoted the awareness of corporate compliance operations through internal training and

external training on introduction of regulations. Key production quality managers are sent to attend professional forums

and trainings on specific topics such as risk management, production, change of techniques, verification and change

management of sterile preparations on the one hand, and all staff within these enterprises participate in management

training on the 2010 GMP and training of standard operation procedure on the other hand. In addition, Fosun Pharma

also invited pharmaceutical industry experts to jointly organize the Aseptic Technology Forum and Data Reliability

Technology Forum, and organized Eu regulations training. In 2018, each person in pharmaceutical member companies

received more than 44 hours of quality training on average, increased by 9 hours per person compared with 2017.

(6) Handling of users’ complaints and returned goods

On the basis of the customer complaint system of member companies, in 2018, the headquarters of Fosun Pharma

also established a customer complaints & consultation system. In 2018, the domestic pharmaceutical member

companies of Fosun Pharma received a total of 25 complaints related to product quality, a decrease by 49% as

compared with 2017; the device member companies of Fosun Pharma received a total of 281 complaints related to

product quality. All of the complaints were replied to and handled.



WEALTh ECOSySTEM – NANJING IRON & STEEL

(1) Provide quality products and services

In 2018, Nanjing Iron & Steel received random checks 6 times made by the state or provincial government, and 17

products, including bearing steel, hot-rolled reinforcing steel, spring steel, and bridge steel, passed the inspections

with a sampling pass rate of 100%.

In 2018, the patent application of Nanjing Iron & Steel broke the historical record, with 257 domestic patent

applications, 26 PCT foreign patent applications, and 118 authorized patents. For the first time, the number of

patents exceeded the thousand mark, reaching 1,011.

In 2018, two products of alloy structural steel round bar for cold-wearing and cold-rolled steel wire rods won the

“Quality Products of Metallurgical Industry”; one product of nickel alloy steel plates for low-temperature pressure

vessels won the “Double Hundred Brand” of high-end manufacturing in Jiangsu Province and the “100 Best Names

of Famous Brand Products of Jiangsu, Zhejiang, Anhui, Jiangxi and Shanghai”; the four products of high-strength

wear-resistant steel plates for construction machinery and hot-rolled ribbed steel bars for reinforced concrete have

won Jiangsu famous brand products.

(2) Establishment and certification of quality system

In 2018, Nanjing Iron & Steel successfully carried out 292 steel product (26 types) certifications. In 2018, steel plate

and steel long products of Nanjing Iron & Steel passed the second-party certification and review of 62 well-known

domestic and foreign enterprises, of which acid-resistant pipeline steel has been certified by Saudi Aramco after

efforts of 8 years, becoming the first certified steel company in China.

Description of relevant system certifications in 2018 are as follows:

• Successfully passed the ISO9001:2015 new version of the quality system conversion certification;

• Successfully passed the IATF16949:2016 new version of the quality system conversion certification;

• Established and operated ISO/TS 22163:2017 railway industry management system.

(3) Supplier management

Nanjing Iron & Steel conducted system audits on key stages of workflow such as raw material procurement from

suppliers, production process control, and ex-factory inspection to improve and optimize suppliers’ quality and

process control capabilities. In 2018, Nanjing Iron & Steel added 78 new suppliers and conducted a total of 89

reviews over suppliers. Of these, 78 were for the access approval of suppliers, and the pass rate was 97.4%. The

suppliers were reviewed by second party for 11 times and the pass rate was 100%.

(4) Quality training

Nanjing Iron & Steel formulated and improved the “Employee Education and Training Management Measures” (《員工教育培訓管理辦法》) and other systems and established a complete employee training system. The company

stresses quality training and focuses on aspects including quality (including systems), quality awareness, and job

skills. In the whole year of 2018, there were more than 6,990 person-times of quality training, more than 1,620

person-times of quality management training, and more than 130 person-times of internal auditors training.

Through the theory test, certificate obtaining, and organizers’ evaluation of training, etc., the training effect is

evaluated to ensure that the training achieves the desired effect, and complete the annual quality goals.



(5) Handling of users’ complaints and returned goods

Nanjing Iron & Steel has established the concept of “customer first, product first”, established and strengthened

pre-sales and after-sales service management on the basis of the original information platform, so that user

management runs through the entire sales process, and regulates the life cycle of user service. Nanjing Iron &

Steel has set up a third-party customer complaints platform to collect users’ complaints, suggestions, questions

and appeals, and makes effective responses to them without letting users feel that the company tries to pass the

buck. Relevant persons in charge respond to users’ complaints as they receive such complaints, and handle them

within 24 hours in principle. The relevant management department will reply for users’ surveys, visits, consultations,

complaints, and handling results and will centralizedly close such cases.

In 2018, the products quality of the company was steadily improved and there were no major complaints from

customers throughout the year. The amount of compensation for quality objection per ton steel was RMB0.58/ton

lower than the target. users generally believed that Nanjing Iron & Steel’s technical support and service work was

timely and satisfied with the complaint processing results.

(6) Increased customer satisfaction

The company conducts two customer satisfaction surveys each year, covering domestic and foreign strategic and

key customers. In the whole year of 2018, the overall customer satisfaction score was 94.53, which was 0.54%

higher than that of the last year. In the past three years, the composite satisfaction score was 94.2, and a customer

satisfaction survey report was formed. The company analyzes the problems occurred in the survey, prepared a

rectification analysis report, organizes related units to implement rectification and give feedbacks, and reviews the

rectification to form a closed-loop management.

hAPPINESS ECOSySTEM – yUyUAN

The Yuyuan real estate quality management implements the awareness of “quality is benefit”. By introducing an external

third-party quality quarterly inspection system, it is horizontally connected with the external parties, finds gaps, finds

pain points, moves management priorities forward, and engages in post-management to ex ante control. Quality control

runs through the entire construction process. It implements the large operation management system, according to the

characteristics of the project, focuses on quality control, plans ahead, and formulates plans; before the process construction,

the sample guides, the sample passes, and is fully rolled out.

In 2018, the Yuyuan real estate business has won various awards. For example, Shanghai Songting 6-2 Project won the

“Quality Structure Award in 2018 of Shanghai”; Changsha Xingguang Tiandi was recognized as “Excellent, Safe, Civilized,

and Standardized Site in Construction, Quality, and Management” by the Quality Supervision Station and Security Inspection

Station under the Changsha Municipal Housing Construction Committee; Beijing Tongzhou 06 plot won the “National Safe

Production Standardized Site (formerly National AAA Grade Safety and Civilization Site)”, and the AC Building won the “Beijing

Structure “Great Wall Cup” Gold Award”, while BD Building won the “Beijing Structure “Great Wall Cup” Silver Award”.

The Forte Financial Island project focuses on finance

and builds the first “Hive City” project of Yuyuan in

the southwestern region. The Forte Financial Island,

located at the core of Chengdu Financial City, is

surrounded by Chengdu’s mother river Jinjiang. It is

the only CBD island in China. The businesses cover

Super A, Grade A office building, apartment, hotel,

commerce, performing arts, residential property,

kindergarten. The project has won the provincial

high-quality structure, Sichuan Province observation

site of quality and safety standardization, and

outstanding projects of construction quality and

safety in Chengdu high-tech zone.



hAPPINESS ECOSySTEM - FTG

FTG places a high priority on product and service excellence for the customers of FTG. To fulfill product responsibility, FTG

clearly communicates with, build capacity in and receive vigorous support from employees, customers and supply chain.

The quality and reliability of sales information is an essential condition of a relationship of trust between a company and its

customers, especially when it comes to products involved in vacations.

In light of this, and of its strong brand awareness and reputation, FTG relies on a specific process managed by marketing

department, and on the various departments, including the legal department, to ensure that promotional materials

are reliable and do not contain exaggerated promises. This includes making sure that the terms and conditions of sale

provided for products and services are clear, complete, reliable and comply fully with all applicable tourism legislation and

regulations.

For service quality, FTG gathered feedback via “GM Feedback”, thereafter, customer service department in France handles

customer feedback, monitors and manages quality, and provides operations staff with monthly feedback reports. Concerning

the “GM Feedback”, in 2018 the rate of “very satisfied” from the Club Med customer is slightly above comparing with

2017. Furthermore, the “Quali-Signs” quality standards are in all villages and compliance with these standards is managed

through staff training and various forms of monitoring.

PRivACy PROtECtiOnTo support the goal of products capability building, industry operation and value creation, one of the Group’s key missions is to strictly

protect user data and all other sensitive information and prevent them from leakage. After considering products and services in a

comprehensive manner, the Group has incorporated applicable regulatory laws and regulations for privacy protection into its internal

compliance policies and strictly adheres to them. In 2018, the Group did not receive any complaints from regulators about infringement of

customer privacy and information leakage.

The Group regularly provides employees with compliance training on privacy and user data protection to emphasize the importance of

privacy and user data, enhance employee privacy awareness and establish a privacy-protected corporate culture.

The Group is committed to the continuous improvement of its rules and regulations in respect to customers’ personal data collection

and protection, regular review of its privacy policies, and assurance that its products and services are free from any risk or threat of

infringement of privacy or leakage of user data in the course of providing them.

humAn REsOuRCEsAs of 31 December 2018, the Group had approximately 70,000 employees.

During the year of 2018, guided by the ambition of making a difference by serving families worldwide, and surrounded by the strategic initiatives of Fosun to provide high-quality products and services for families around the world while rooted in China by innovating C2M happiness ecosystems in health, happiness and wealth, Fosun Human Resources Division focused on consolidating the soil of Fosun’s cultural values constantly, deepening the industrial depth and lifting the operational capabilities from the perspectives of organizational structure and talents continuously. We aim to build an organization equipped with both industry operations and industrial investment capabilities and to promote organizational evolution to be more agile, more efficient and more dynamic combined with management innovation and smart technology innovation.



We concentrate on the global talent layout, and strive to build up an elite talent acquisition team to enhance the talent introduction ability of Fosun’s family. We aim to continuously expand talent pool, focusing on high-potential talents from various industries with operational capabilities, and be equipped with sufficient reserves of talents. Joined with enterprises from Fosun’s family, we hold global campus recruitment, actively promote the brand of ONE Fosun and strengthen Fosun’s employment value proposition (EVP), and attract fresh talents from all fields worldwide.

With the upgrading of the organizational structure of the enterprise, we keep strengthening the industrial depth of organization and talents, optimizing the advantages of the industrial groups, adjusting the talent structure timely and enhancing the talent efficiency; we promote mutual empowerment between the Group and its member companies, focus on high-potential talents with outstanding performances, provide them with more promotion and development opportunities, actively develop the full potentials of employees, and provide opportunities for rotation in a timely manner. At the same time, we continue to promote multi-dimensional, multi-partnership and deep-rooted “partnership model” and various supporting measures.

Focusing on industrial depth and coordinating with the organizational structure upgrade, we design and optimize various incentive systems through comprehensive review of short-, medium-, and long-term incentive mechanism. According to different characteristics of each industrial group, we actively explore innovative tools and ideas to improve the accuracy of incentive mechanism. Innovative, simplified and efficient incentives are used to enhance the implementation of various incentive mechanisms.

Fulfilment of the Commitment to EmployeesFosun regards its employees as its most valuable capital. Meanwhile, Fosun has been aiming to provide the best platform for employees to realize their values. We fully protect the interests of employees, and we are always concerned about the personal development of our staff. We emphasize on the importance of cultivating outstanding talents with an international perspective, and devise a career development path with Fosun characteristics to allow both companies and our employees to develop together.

Employee Caring and ServicesFosun persists in improving, innovating and strengthening the establishment of a comprehensive and diversified benefit system in order to create a sound enterprise atmosphere and enhance the sense of belonging among the employees. Fosun cares not only for its employees, but also their families. These are consistent with the value of “Self-improvement, Teamwork, Performance and Contribution to Society” upheld by Fosun.

EMPLOyEE CARING

Fosun has established different schemes for various employee groups. Centring on the Group’s happiness ecosystem, employees’ families may also participate in various warm-hearted activities of the Company. We have adopted the incentive and benefit schemes tailored for our core talents, outstanding performers and young high-potential employees. We fully utilize the Group’s own resources so that employees and their families can access to all types of internal products, services and related resources more conveniently while at lower costs.

Fosun pays great attention to staff’s health management, keeps on innovating the health management model. In addition to covering the annual physical examination of all employees, Fosun also encourages employees to participate in fitness activities such as Tai Chi and dance, conducts health lectures, and strengthens employee health awareness. Integrating rich medical and insurance resources within the Group, we create a variety of health services. By introducing advanced technology companies within the Group, we organize employees to experience the latest black technology in health in the first time, and provide online consultation and online appointments for medical examination, etc.

Fosun also cares about both the physical and mental health of female employees and provides extra care to them. The Group expresses its appreciation to female employees on Women’s Day every year. We also organize lectures regularly on women’s health and prevention of occupational diseases, etc..

We have been striving to provide diverse forms of care to employees and their families, including all-round care for the growth of the “Children of Fosun Employees” and enrich family life of our employees. We prepare gifts for “Children of Fosun Employees” on Children’s Day every year, organize various activities from time to time and invite employees and their families to participate, hoping to help our employees and their families to enjoy happy lives.



EMPLOyEE SERVICES

We use the internet and various innovative technologies to provide better services to employees. We continue to optimize and innovate the methods of benefit distribution and dissemination, such as announcing employee benefits through our own mobile application so that our employees can easily find various remuneration benefits and human resources policies on our self-developed mobile application platform. We distribute employee benefits through the mobile application platform which also allows users to recharge value online and pay for meals.

We have full-time employee service positions within our Global Human Resources Shared Service Centre, assisting employees in applying for various certificates, such as employment permits/residence permits for overseas staff, permits for introduction of high caliber employees from other provinces or cities/residence certificates for employees from other cities, settlement of registered permanent residence of college graduates and collective residence affiliation so as to save time and efforts spent by employees on applying for these certificates, which effectively supported the introduction of excellent talents.

To drive the Group’s globalization and meet the demands of our diverse employees, we studied and formulated exclusive welfare policies and systems according to the laws, regulations and market practices of different countries and regions. Meanwhile, we also introduced induction courses and the “Buddy” program to help expatriate staff to quickly understand and integrate into our corporate culture.

Employee Learning and DevelopmentFosun believes that talents represent the core competitiveness of an enterprise, and as such, it has always been valuing the development of both company and its staff as one of the most important responsibilities of Fosun. It provides the employees with more opportunities for career development and better working conditions through sustained efforts. With continuous growth and structural improvement, we have promoted the integration and cooperation among team members, created value and built groups with elitism culture. These measures allow both the Group and its staff to build a brilliant future together.

CULTURAL PROMOTION

We enhance the promotion and unified understanding of the Group’s corporate culture and values through continuous training and the exchange of views among our portfolio enterprises. Meanwhile, we also work with external consulting firms, institutes and universities to integrate our internal and external training materials and resources, in attempt to promote our corporate brand. In addition, the Group has developed a unified mechanism regarding “soft culture”. It effectively bridges the gap between the diverse talents with different cultural backgrounds, and realizes harmonious relationships among the members of Fosun’s big family.

STRATEGy INTERPRETATION

The Group focuses on its development strategy to solve practical issues, assists the staff in understanding the key strategies of the Group by sharing cases of innovation and best practices in order to better implement our strategies extensively and in a well-coordinated manner.

CAREER DEVELOPMENT

In accordance with the development strategy and the human resources planning requirements of the Group and taking into account the characteristics of its own development, we have established talent development and professional talent training programs for different talents. We design development paths for our employees in a scientific and rational manner that matches different development goals. We further design training courses based on the quality of capabilities and occupational requirements to help employees grow rapidly.

Learning and Development Cases

TALENT EChELON TRAINING PROGRAM

The training program was organized for employees with high potentials at all levels internally in accordance with the Group’s development strategy and planning, which is an important way for Fosun to train investment experts and potential business leaders. With the form of interactive project learning as the main theme, the high-potential talent training program brought students under different plans together to form project teams and improve the comprehensive ability of employees through real project cases to precipitate and accumulate business experience.

PROFESSIONAL TALENT TRAINING

While devising various professional and specialized trainings, we focus on investment, insurance, finance, risk control, human resources and other areas with the aim of honing the employees’ business ability and adaptability to “learn from practice”.



INVESTMENT CASE REVIEW

The think tank of Fosun has typical cases reviewed from work and exceptional cases of outstanding performance of high-caliber employees

who share their work experience with others. It focuses on three targets: firstly, to improve the staff’s investment and management

capability by conducting internal training and sharing experience with investment teams; secondly, to gradually develop tools or methods

that Fosun should have possessed in investment practice based on the experience related to many cases of investments and thirdly, to

progressively refine the learning-and-growth model of our core investment members through a series of case studies.

LEARNING AND DEVELOPMENT OF ENTIRE STAFF

The Group offers a variety of learning and development programs to staff, in addition to specially-designed programs for specific personnel.

• Luncheon Session

According to its strategic focus, the Group held 42 luncheon sessions in 2018 inviting Directors, Fosun’s global partners and

some enterprisers to share the corporate strategies, hot topics on investment, internet and best practices. The sessions helped the

employees to have a deeper understanding on the Group’s strategy, have their horizon broadened and their knowledge enriched.

More than 3,337 employees attended the sessions.

• Mobile Learning Platform

We built an anytime, anywhere and unobstructed learning platform by utilizing fragmented time. In 2018, we introduced and

internally transformed a total of more than 58 mini courses covering skill-training classes in a variety of areas such as investment,

finance and soft skills, which provided a convenient online learning platform for employees at the group level, employees of

enterprises under incubation and employees of some portfolio companies.

• Post-90s Fresh Talk

As a young company, Fosun has also set up a showcase stage for post-90s employees who were invited to introduce emerging things in

the current industry such as various interesting and cutting-edge topics like parenting education, hot issues, films and television industry

analysis, and bitcoin etc., 7 episodes were released in Season 3 in 2018.

Employment and Labour StandardsOur employees are our most valuable asset and also the core of competitive advantages of the Group. The Group has been adhering to

the principle of “attracting people with development, uniting people by career, training people with work and appraising people with

performance” and advocates fair competition and opposes discrimination. All employees and job applicants are not confined by factors

such as gender, age, race, skin color and religious belief. The establishment of all human resources policies strictly complies with all

rules and relevant regulations in connection with remuneration and dismissal, recruitment and promotion, employee schedule, equal

opportunities, diversity, working hours, rest periods and other benefits in countries/regions where our operations are located.

During the Reporting Period, all employees of the Group met the minimum working age requirements set out in the relevant laws of the

countries/regions where our operations were located and the employment of child labor or forced labor was prohibited.

Employee IncentiveThe Group always implements the incentive principles of value creation, performance orientation, profit and loss sharing, and clear rewards

and punishments. We constantly review and optimize the existing incentive system and policies, and encourage employees to work towards

strategy implementation and achieve self-development through the multi-level and full-coverage remuneration system. At the same time,

according to the business characteristics, strategic requirements and development stages of different industrial groups, various incentive

tools are combined to empower the business and motivate the team.

human Resources Intelligent InnovationGuided by the strategy of technology leading and keep innovating, the Group’s Human Resources Management Centre, using various

internet technologies, is committed to providing basic facilities, data sharing and analysis capabilities on organization mechanisms, talents

and data within the entire group: create human resources big data platform, and through intelligent innovation, create value for human

resources information sharing and integration of the Group and its member companies; for the core portfolio enterprises as the pilot, by

quickly breaking through technical bottlenecks and reducing management costs, we have greatly enhanced internal operational efficiency,

and have innovated human resources product design to help member companies enhance the level of human resources informatization.



AwARDs RECEivED By thE GROuP in 20182018.1 The Company was acclaimed as “2017 The Best Investment Management Company in Asia” by the well-known British

financial magazine Global Banking & Finance Review.

The Company received the highest accolade “Golden Hong Kong Stock Award 2017” by Zhitongcaijing.com (“智通財經”)

and www.10jqka.com.cn (“同花順財經”).

2018.3 The Company was awarded the “Best Cash Management Solution Award” under the Triple A “Best Treasury, Trade, Supply

Chain and Risk Management Awards 2018” category by the renowned international financial magazine The Asset.

2018.4 The Company was awarded one of the “100 Most Attractive Stock-Connect HKEX-listed Companies for Institutional

Investors” by the Yuediaoyan platform and the Hong Kong Stock Exchange.

2018.5 The Company’s 2018 corporate video “Welcome Home” was awarded the Gold prize of the QuESTAR Awards under

the “Internal Communications” category by MerComm, Inc., an internationally renowned multimedia communications

institution.

2018.6 The Company was ranked No.416 on “Forbes Global 2000” by the united States magazine Forbes.

2018.7 The Company was awarded as “Asia’s Honored Company (Industrial)” in “2018 All-Asia Executive Team” ranking organized

by the united States authoritative financial magazine, Institutional Investor.

The Company was ranked No.89 on “China’s Fortune 500” by Fortune China.

2018.8 The Company was awarded “Top 50 Boards of Directors in China for 2018” by Fortune China.

2018.9 Shanghai Fosun High Technology (Group) Co., Ltd. was awarded “Organization Award of 2017 Shanghai Society of the

Guangcai Program” co-organized by the united Front Work Department of the Shanghai Committee of the Chinese

Communist Party, Shanghai Federation of Industry and Commerce, and Shanghai Society for the Promotion of the Guangcai

Program. (This award recognized the contribution of private enterprises in addressing poverty alleviation and development

in Western China)

2018.11 The Company received “2018 Distinguished Listed Companies” award at “2018 Listed Companies Distinguished Award”

from TVB Finance and Information Channel.

The Company was ranked No.25 on “The Future 50” by Fortune.

The Company was awarded the “Gold Award” and “Best Investor Relations Team Award” at “The Corporate Awards 2018”

from The Asset, a renowned international financial magazine.

2018.12 The Company’s Protechting Program was awarded the “Sustainable Development 2018 Enterprise Best Practice” prize by

the Chinese Network of the united Nations Global Compact (uNGC).

The Company was awarded the “Most Valuable Listed Companies” at “2018 Golden Lion Award Hong Kong Listed

Companies Value List” organized by “Sina Finance”.

The Company was awarded the “Most Influential Chinese Global Brand of the Year” by PR Newswire, the world’s leading

media communication technology and data analytics company.

Glossary


FORmulAAdjusted NAV per share = (market value of listed investments held at the group level + the fair value of unlisted investments

estimated by the management utilizing precedent transactions analysis or comparable company

analysis – the net debt at the group level)/total issued number of shares of the Company

Capital employed = equity attributable to owners of the parent + total debt

EBITDA = profit for the year + tax + net interest expenditures + depreciation and amortisation

Interest coverage = EBITDA/net interest expenditures

Net debt = total debt – cash and bank and term deposits

Net gearing ratio = net debt/shareholder’s equity

Net interest expenditures = Interest expenses, net + interest on discounted bills + interest on finance leases

ROE = profit attributable to owners of the parent for the year/[(opening balance of equity attributable to

owners of the parent + ending balance of equity attributable to owners of the parent)/2]

Total debt = current and non-current interest-bearing bank and other borrowings + convertible bonds

Total debt to total

capital ratio

= total debt/(shareholder’s equity + total debt)

ABBREviAtiOnsAHAVA AHAVA Dead Sea Laboratories Ltd.

Aitrox Shanghai Aitrox Information Technology Co., Ltd (上海杏脈信息科技有限公司) (formerly known as

Shanghai Proxima Technology Ltd.)

AmeriTrust AmeriTrust Group, Inc. (formerly known as Meadowbrook Insurance Group, Inc.)

Articles of Association the current articles of association of the Company with the latest amendments made on 17 June

2008

Babytree Babytree Group, a company whose H shares are listed on the Hong Kong Stock Exchange with stock

code 01761

Baihe Jiayuan Baihe Jiayuan Network Group Co., Ltd (百合佳緣網絡集團股份有限公司), a company whose shares

are listed on the NEEQ with stock code 834214

BCP Banco Comercial Português, S.A., a company whose shares are listed on the Euronext Lisbon with

stock code BCP

Besino Environment Besino Environment Ltd. (柏中環境科技（上海）有限公司)

the Board the board of Directors

BRL Brazil Real, the official currency of Brazil

Cainiao Cainiao Network Technology Co., Ltd. (菜鳥網絡科技有限公司)

Caruso Raffaele Caruso S.p.A.

CG Code Corporate Governance Code and Corporate Governance Report contained in Appendix 14 of the

Listing Rules

Chancheng Hospital Foshan Chancheng Central Hospital Company Limited

Club Med Club Med SAS

the Company Fosun International Limited

the Director(s) the director(s) of the Company

EuR Euro, the official currency of the Eurozone

Fidelidade Fidelidade – Companhia de Seguros, S.A.

Fidelidade Assistência Fidelidade Assistência – Companhia de Seguros, S.A. (formerly known as Cares – Companhia de

Seguros, S.A.)

Fonova Shanghai Fonova Information Technology Co., Ltd. (上海星濟信息科技有限公司)

Forte Shanghai Forte Land Co., Ltd.

Fosun Capital Shanghai Fosun Capital Investment Management Co., Ltd. (上海復星創富投資管理股份有限公司)

Fosun Hani Securities Fosun Hani Securities Limited

Fosun Holdings Fosun Holdings Limited

Fosun Insurance Portugal Fidelidade, Multicare and Fidelidade Assistência

Fosun International Holdings Fosun International Holdings Ltd.


Glossary

Fosun Pharma Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (上海復星醫藥（集團）股份有限公司), a company

whose A shares are listed on the SSE with stock code 600196, and whose H shares are listed on

the Hong Kong Stock Exchange with stock code 02196

Fosun united Health Insurance Fosun united Health Insurance CO., LTD (復星聯合健康保險股份有限公司)

FTG Fosun Tourism Group, a company whose H shares are listed on the Hong Kong Stock Exchange with

stock code 01992

GBP Pound Sterling, the official currency of united Kingdom

GFA gross floor area

Gland Pharma Gland Pharma Limited

the Group or Fosun the Company and its subsidiaries

H&A Hauck & Aufhäuser Privatbankiers AG (formerly known as Hauck & Aufhäuser Privatbankiers KGaA)

Hainan Mining Hainan Mining Co., Ltd. (海南礦業股份有限公司), a company whose A shares are listed on the SSE

with stock code 601969

HKD Hong Kong dollars, the official currency of Hong Kong

Hong Kong the Hong Kong Special Administrative Region of PRC

Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited

IDERA IDERA Capital Management Ltd.

JPY Japanese yen, the official currency of Japan

Koller Koller Beteiligungs GmbH

LANVIN Jeanne Lanvin SAS

Listing Rules the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange

Luz Saúde Luz Saúde, S.A. (formerly known as ESPÍRITO SANTO SAÚDE – SGPS, SA), who has been delisted

from the Euronext Lisbon in November 2018

Model Code the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix 10 of

the Listing Rules

Multicare Multicare – Seguros de Saúde, S.A.

Mybank Zhejiang E-Commerce Bank Co., Ltd. (浙江網商銀行股份有限公司)

Nanjing Iron & Steel Nanjing Iron & Steel Co., Ltd. (南京鋼鐵股份有限公司), a company whose A share are listed on the

SSE with stock code 600282

Nanjing Nangang Nanjing Nangang Iron & Steel united Co., Ltd. (南京南鋼鋼鐵聯合有限公司)

NEEQ National Equities Exchange and Quotations

Peak Reinsurance Peak Reinsurance Company Limited

Pramerica Fosun Life Insurance Pramerica Fosun Life Insurance Co., Ltd. (復星保德信人壽保險有限公司)

PRC or China the People’s Republic of China

Reporting Period the year ended 31 December 2018

Rio Bravo Rio Bravo Investimentos S.A.

RMB Renminbi, the official currency of the PRC

ROC Roc Oil Company Limited

Sanyuan Foods Beijing Sanyuan Foods Co., Ltd. (北京三元食品股份有限公司), a company whose A shares are listed

on the SSE with stock code 600429

SFO the Securities and Futures Ordinance (Charter 571 of the laws of Hong Kong)

Shanghai Henlius Shanghai Henlius Biotech Co., Ltd. (上海復宏漢霖生物技術股份有限公司)

Share(s) the share(s) of the Company

Share Award Scheme the share award scheme adopted by the Company on 25 March 2015, as amended from time to

time

Silver Cross Silver Cross Nurseries Limited

Sinopharm Sinopharm Group Co., Ltd. (國藥控股股份有限公司), a company whose H shares are listed on the

Hong Kong Stock Exchange with stock code 01099

Sisram Med Sisram Medical Ltd, a company whose H shares are listed on the Hong Kong Stock Exchange with

stock code 01696

SSE the Shanghai Stock Exchange

Starcastle Senior Living Shanghai Starcastle Senior Living Co., Ltd. (上海星堡老年服務有限公司)


Glossary

St Hubert St Hubert SAS

Thomas Cook Thomas Cook Group plc, a company whose shares are listed on the London Stock Exchange with

stock code TCG

Tom Tailor TOM TAILOR Holding SE, a company whose shares are listed on the Frankfurt Stock Exchange with

stock code TTI

Tsingtao Brewery Tsingtao Brewery Company Limited (青島啤酒股份有限公司), a company whose A shares are listed

on the SSE with stock code 600600, and whose H shares are listed on the Hong Kong Stock

Exchange with stock code 00168

uSD united States dollars, the official currency of the united States

Wanbang Jiangsu Wanbang Biopharmaceuticals Group Co., Ltd. (江蘇萬邦生化醫藥集團有限責任公司)

Wolford Wolford Aktiengesellschaft, a company whose shares are listed on the Vienna Stock Exchange with

stock code WOL

Yong’an P&C Insurance Yong’an Property Insurance Company Limited (永安財產保險股份有限公司)

Yuyuan Shanghai Yuyuan Tourist Mart Co., Ltd. (上海豫園旅遊商城股份有限公司), a company whose A

shares are listed on the SSE with stock code 600655

innovation for excellence · 2021. 4. 15. · 84 fosun international limited annual report 2018...

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